US Probes Oil Firm Over Bribery In Nigeria, Other Countries – TheNigerialawyer

Global oil trader, Glencore is under investigation by the
Commodity Futures Trading Commission of the United States over
potential corrupt practices linked to commodities, the company said
on Thursday, revealing a new avenue of possible liability in the
US.

The Financial Times, reported on Friday that the Swiss-based
trading company has previously disclosed an investigation by the US
Department of Justice into possible violations of the Foreign
Corrupt Practices Act related to its operations in Nigeria,
Venezuela and the Democratic Republic of Congo.

“Glencore understands that the CFTC’s investigations are at an
early stage and have a similar scope in terms of subject matter as
the current ongoing investigation by the US Department of Justice,”
the company said, adding that it would co-operate with the
CFTC.

The CFTC investigation is another headache for Glencore, the
world’s most powerful commodity trader, and a further sign of the
scrutiny the commodities trading industry is facing in a number of
jurisdictions.

In December, the former head of Glencore’s copper business was
fined $1.8m by Canadian regulators and banned from serving as a
company director for four years, after the company’s subsidiary in
the Congo was found to have issued misleading financial
statements.

The investigation by the Ontario Securities Commission also
found Katanga Mining, which is majority-owned by Glencore, failed
to disclose its relationship with Israeli businessman Dan Gertler,
who has been sanctioned by the US for his “opaque and corrupt
mining and oil deals” in the DRC.

The company and rivals Trafigura and Vitol are also under
investigation in Brazil regarding alleged bribery involving
Petrobras, the Brazilian oil company.

Glencore revealed a US justice department subpoena last July
that demanded records going back as far as 2007. In its annual
report, the group said the investigation as it related to Nigeria
and Venezuela was focused on oil deals.

Tony Hayward, Glencore’s chairman and formerly the boss of oil
company BP, has been overseeing the company’s response to the
justice department investigation as part of an investigations
committee of Glencore board members set up in July 2018. The
committee will also oversee Glencore’s handling of the CFTC probe,
the company said.

Shares in Glencore are down around 8 per cent since it disclosed
the justice department subpoena, lagging most of its peers as the
investigation has made some investors wary of the company.

Ivan Glasenberg, Glencore’s chief executive, has repeatedly
declined to comment on the DoJ investigation.

The fact that its activities in Venezuela and Nigeria, two big
oil producing countries, are under scrutiny suggests a broader
interest in the company’s operations. Glencore is the world’s
third-biggest independent oil trader, handling more than 4.5m
barrels per day.

Foreign bribery cases in the US have historically been led by
the justice department, which can bring criminal charges, often in
partnership with the Securities and Exchange Commission, which has
civil authority.

The announcement by Glencore is the first disclosure of a CFTC
investigation involving potential corruption since the US
derivatives regulator announced it was expanding its enforcement
remit in March.

The CFTC does not have the power to bring criminal prosecutions,
but can seek civil penalties and trading bans through its authority
under the Commodity Exchange Act.

In a speech last month, James McDonald, the director of
enforcement at the CFTC, said his agency would avoid piling on to
existing investigations and that any fines imposed would take into
account penalties required by other authorities.

A CFTC spokeswoman did not immediately return a request for
comment on Glencore’s disclosure.

Paul Gait, analyst at Bernstein Research, said the CFTC’s move
smacked of a political land grab to “show that we are a
player”.

“Clearly this is not helpful for Glencore. But it’s difficult to
see this making a difference to investors who hold the shares and
have weathered [the DoJ] storm”.

He added: “Even if the DoJ does uncover something how would the
CFTC prove it had an impact on US commodity markets. It’s hard
enough trying to prove supply and demand fundamentals impact the
market.”

Glencore was among the companies that won the two-year crude
lifting contracts given to traders by the Nigerian National
Petroleum Corporation in May 2018.

The NNPC issued in 2018 crude export contracts expected to last
two years instead of the usual one year.

A partial preliminary list, according to Reuters, had shown 30
companies, including the world’s largest energy traders, Vitol,
Trafigura and Glencore.

In the annual report, Glencore’s auditor, Deloitte, was said to
have noted that the company’s activities in Nigeria within this
period were “limited primarily to oil offtake agreements.”

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Trooops Rescue Kidnapped Victims in Benue
State

Troops of Operation WHIRL STROKE deployed to counter banditary
activities in North Central Nigeria have rescued 3 kidnapped
victims in a building located at Gana’s family compound at Gbise in
Katsina Ala Local Government Area of Benue State.

The victims, a man and two women were rescued during a dawn raid
in the early hours of Friday 26 April 2019, when gallant troops
stormed a building reportedly belonging to a notorious bandits’
leader, Gana. The visibly traumatized victims claimed they were
abducted about 2 months ago at Gboko by a gang of kidnappers and
subsequently relocated to Gbise community.

Troops are are still on the trail of the criminals, who fled
their enclave after they were overpowered in a shootout with the
troops. Troops have also destroyed the building which served as the
kidnappers hideout.

The rescued persons have been handed over to authorities of
Benue State Government for medical attention before reuniting them
with their respective families.

Similarly, troops of Operation WHIRL STROKE deployed to Giza in
Nasarawa State have arrested a bandit during a raid on a suspected
bandits’ hideout at Alima, near Kadarko in Nasarawa state. The
bandit, who was intercepted with a locally made rifle and some
quantity of gun powder is currently assisting in preliminary
investigations after which he will be handed over to an appropriate
prosecuting security agency.

Please disseminate this information to the general public
through your medium. Thank you for your kind cooperation.

ONYEMA NWACHUKWU
Colonel
Acting Director Defence Information