UK: SFO charges ex-Glencore traders over corruption scandal

The UK’s Serious Fraud Office (SFO) has taken a bold step in the fight against international corruption by charging five former oil traders from Glencore with conspiracy to make corrupt payments linked to the company’s operations in West Africa, particularly Nigeria.

The accused—Alex Beard, Andrew Gibson, Paul Hopkirk, Ramon Labiaga, and Martin Wakefield—are alleged to have engaged in bribery that facilitated Glencore’s oil dealings in the region.

In a statement released on Thursday, the SFO detailed that the charges stem from corrupt payments intended to benefit Glencore’s extensive oil operations across several countries, including Nigeria, Cameroon, and the Ivory Coast, during the period from 2007 to 2014.

Additionally, Andrew Gibson and Martin Wakefield face charges concerning the falsification of invoices submitted to Glencore’s London office, falsely labeled as service fees for a Nigerian oil consultancy between 2007 and 2011.

A court hearing has been scheduled for 10 am on September 10, 2024, at Westminster Magistrates’ Court, marking a pivotal moment in the legal proceedings against these former traders.

Nick Ephgrave QPM, Director of the SFO, emphasized the detrimental effects of bribery on financial markets and communities, stating, “Today’s action is an important step towards exposing overseas corruption and holding those who are responsible to account.”

This development follows the Nigerian government’s recent announcement that Glencore will pay a $50 million penalty for its role in bribery, as disclosed by Attorney General Lateef Fagbemi.

This payment is part of a broader settlement agreement between Glencore and Nigerian authorities, stemming from the company’s admission that it and its subsidiaries paid over $52 million to intermediaries in Nigeria to facilitate bribery.

In a wider context, Glencore has agreed to a staggering $1.5 billion in penalties to resolve investigations across the US, UK, and Brazil, with over $1 billion allocated to US and Brazilian agencies.

The company had previously pleaded guilty to corruption and market manipulation charges in 2022, acknowledging the payment of bribes to secure business in eight countries, including Brazil and South Sudan.

A spokesperson for Glencore confirmed the charges against the former traders, highlighting the company’s cooperation with the SFO during the investigation and its commitment to addressing past wrongdoing.