"Glencore's Trouble in Congo Claims Its Highest Profile Victim", 20 November 2017

Two weeks after the Paradise Papers leak brought a wave of scrutiny over Glencore’s dealings in the Democratic Republic of Congo, the company is facing another scandal. The issues stem from Katanga Mining Ltd., a Congolese copper producer owned by Glencore. The African company restated financial statements and is under investigation by Canadian regulators for its corporate governance and accounting practices. In a major sign of how toxic the problem has become for the Swiss commodities giant, three executives including billionaire Aristotelis Mistakidis resigned from the board of Katanga...An internal review found among other problems that Katanga had failed to disclose compensation paid to some executives and overstated copper output in 2014. In some cases, senior management and executive directors were responsible for overriding control processes. Canada’s Ontario Securities Commission is also investigating the accuracy of Katanga’s financial reporting, corporate governance and the conduct of some directors and officers. It’s also reviewing disclosures related to bribery and anti-corruption laws...Glencore nominated three new directors to the Katanga board...Katanga’s business dealings in Congo and Canadian disclosures have been questioned before. In March, Global Witness said more than $100 million in payments due to state-owned Gecamines were instead paid to a firm controlled by Gertler. The payments were not clearly described in Katanga’s reporting, according to the London-based advocacy group. In filings between 2013 and 2015, Katanga either said the payments went to Gecamines or didn’t specify the recipients. At the time, Glencore said it made the payments to Gertler’s Africa Horizons Investments Ltd. at Gecamines’s request, and complied with all Canadian disclosure rules.