Canadian regulator expected to fine Glencore subsidiary over business activities in DRC
Author: Caroline Stauffer and Barbara Lewis, Reuters, Published on: 17 December 2018
"Canadian regulator to fine Glencore-controlled miner over Congo - WSJ", 16 December 2018.
A Glencore-controlled mining company and some of its current and former executives have agreed to pay more than $22 million to settle Canadian allegations they hid the risks of doing business with an Israeli close to Congolese President Joseph Kabila, the Wall Street Journal reported. The expected settlement between the Ontario Securities Commission and Toronto-listed Katanga Mining Ltd is related to the company’s business activities in the Democratic Republic of Congo between 2014 and 2016...The Canadian regulator is expected to name several of Katanga’s current and former executives in the settlement, which industrial sources said could be announced this week. Investigations have included exploring Katanga’s ties with Israeli businessman Dan Gertler, the report said. The settlement is also expected to allege that Katanga overstated copper production, understated mining costs and lacked proper internal financial controls, it added...In July, U.S. authorities demanded Glencore hand over documents about its business in the Democratic Republic of Congo, Venezuela and Nigeria as part of a corruption enquiry. Last year after an internal review into Katanga identified weaknesses in its financial reporting controls, three Glencore executives, including Aristotelis Mistakidis, the head of its copper group, stepped down from the board of Katanga...