South African executive Gary Nagle-led Glencore to pay Nigeria $50-million ‘settlement’ penalty

Mfonobong Nsehe -

Key Points:

  • Glencore to pay Nigeria $50 million for bribery, resolving federal government allegations, disclosed by Attorney-General Lateef Fagbemi.
  • Glencore faces extensive legal penalties over bribery accusations in Africa
  • Despite legal challenges, Glencore, under Nagle’s leadership, remains a dominant global commodities player, with diverse revenue streams and significant executive influence.

Glencore Plc, the Swiss-based commodities giant led by South African executive Gary Nagle, agreed to pay Nigeria a $50-million penalty to settle allegations of bribery, the country’s attorney general said Friday.

The settlement stems from a long-running probe into Glencore’s operations in Nigeria. In May 2022, the U.S. Department of Justice accused Glencore and its UK subsidiaries of engaging in illicit transactions to buy oil from Nigeria’s state-owned NNPC. The company allegedly paid over $52 million to intermediaries, intending for part of the funds to bribe Nigerian officials.

Glencore fined $1.87 billion for bribery in Africa

Glencore’s legal troubles are wide-ranging. In May 2022, the company settled investigations in the U.S., UK, and Brazil for $1.5 billion, with $1.06 billion going to U.S. and Brazilian authorities.

A London court followed suit in November 2022, imposing a $310.6-million penalty for seven bribery offenses in Africa. Glencore admitted to five counts of bribery totaling $26.9 million, primarily paid to officials in state-owned oil companies of Cameroon, Ivory Coast, and Nigeria.

The company also admitted to failing to prevent bribery in two instances, involving roughly $1 million paid to agents in Equatorial Guinea and South Sudan to secure oil contracts. Nigeria’s attempt to recover compensation from Glencore in a UK court was denied in October 2022.

Glencore executive owns shares worth $10 million

Founded in the 1970s as a trading company, Glencore has become a major player in the global commodities market. With a diversified portfolio exceeding 60 commodities, Glencore is one of the world’s largest mining groups by revenue.

Gary Nagle, besides his executive role, holds a 0.016-percent stake (around 2 million shares) in Glencore, valued at more than $10 million. This stake highlights his significant influence beyond the boardroom and his contribution to Glencore’s success.