Glencore risky business model just got even riskier with Bulat Utemuratov and Dan Gertler affairs
Glencore, one of the biggest and boldest mining corporation
around the World reported a 25 percent decrease in annual profits. Raw material
prices are at their low. But it is not what makes the prospects of the mining
giant doubtful.
Fines imposed by US and UK for Congolese affairs associated
with the Dan Gertler may be only beginning. Glencore ties with Kazakhstan
tyranny seems to bear similarities with the DRC case. Except this time it might
be much bigger as the Kazakhstan’s Bulat Utemuratov ties are much more
pronounced than the Dan Gertler’s. The unfortunate Unicredit bank sell
resembles the overall treats of the Glencore behavioral patterns in Kazakhstan.
Raw material trader and miner Glencore has seen its gross
profit fall sharply in the past year. The Swiss-British group suffered from low
prices for raw materials. In addition, the world’s largest commodity trader is
under the magnifying glass of many authorities for bribes and other forms of
corruption in Kazakhstan and Congo.
Dan Gertler and DRC govThe adjusted gross profit was $ 11.6
billion. That was a decrease of more than a quarter compared to a year earlier.
An important reason for the fall in profits was a depreciation of 3 billion
dollars as a result of the closure of several mines. Glencore, for example,
closed its doors to the copper mines in Congo and Zambia and crossed a coal
section in Colombia. Turnover fell to $ 215 billion due to lower copper, zinc
and coal prices.
The British anti-corruption Serious Fraud Office (SFO) is
currently investigating whether Glencore was guilty of bribery on several
episodes tied to Kazakhstani Bulat Utemuratov and Congolese officials. Bulat
Utemuratov is known by his previous Unicredit bank affairs and close
affiliation with the Kazakhstan regime. In the United States, the Swiss-British
concern is being investigated for corruption in Africa, Central Asia and Latin
America. In his trading update, Glencore did not yet provide estimates of the
expected fines.
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