Group asks US authorities to channel $1bn fine imposed on Glencore in empowering Africans

The African Energy Chamber (AEC) has asked the United States government to empower Africans with the over $1.1 billion penalty imposed on Glencore, a mining and commodities trading firm, over multiple contract manipulations and bribery.

AEC, an advocacy group for Africa’s energy sector made the call in a press statement on Sunday.

Last week, the US department of justice had said the payment was to resolve the government’s investigations into violations of the Foreign Corrupt Practices Act (FCPA) and a commodity price manipulation scheme.

The department said Glencore and its subsidiaries caused about $79.6 million in payments to be made to intermediary companies in West Africa between 2007 and 2018.

In the statement, AEC advised that a portion of Glencore’s payments should be directed to Power Africa and Prosper Africa, two US government initiatives on the continent, as well as the establishment of the African Energy Bank. 

“Corruption has been the scourge of African countries for far too long. It curtails individual freedoms and fosters poverty and instability. Corruption harms individuals and communities. It kills hope,” the group said.

“That’s why we are calling upon the U.S. government to use the USD1.2 billion in penalties Glencore is paying to empower Africans. They’re the real victims of Glencore’s malfeasance and mistakes.”

It added that the situation does not reflect the normal business dealings of Africa’s oil and gas industry, noting that “it has never solicited or accepted a single monetary contribution from Glencore”.

AEC said Glencore’s dealings in African countries should be closely examined on a local level, and African officials who accepted bribes should be held accountable.

“Investigations should be opened, and Glencore should be forced to come clean about the full extent of its corrupt business dealings, after all, Glencore is a member of the Norwegian-based Extractive Industries Transparency Initiative (EITI),” it said. 

AEC, therefore, called for the suspension of Glencore as an EITI supporting company.

AEC said Glencore would be excluded from the African Energy Week slated for October, 18 to 21,  in Cape Town, South Africa.

“And, finally, everyday Africans — the ones hurt most by corruption’s toxic effects — must receive justice,” it said.