Glencore to deal with graft probe

Glencore has set up a board committee to respond to a US probe into possible corruption at the world’s biggest commodity trader.

The committee is formed of chair and former BP CEO Tony Hayward, as well as non-executive directors Patrice Merrin and Leonhard Fischer, Glencore said.

Glencore last week said the department of justice demanded documents relating to possible corruption and money laundering regarding its business in Nigeria, the Democratic Republic of Congo and Venezuela over the past decade.

The news marked the latest twist in a tumultuous year for the company, knocking about $5 billion (about R67 billion) off its market value in just a day.

On July 5, Glencore moved to soothe investor concerns by saying it’ll buy back as much as $1 billion of its shares this year.

“Glencore takes ethics and compliance seriously,” Hayward said in a statement. “The company will cooperate with the DOJ, while continuing to focus on our business and seeking to maximise value we create for stakeholders.” – Bloomberg