Glasenberg fights shy of Glencore grilling by MPS
GLENCORE boss Ivan Glasenberg has risked the wrath of MPS by rebuffing attempts to grill him on the commodities giant’s tax affairs in developing countries.
Glasenberg will not attend the International Development Committee’s evidence session next week, preferring to send two subordinates instead.
The snub comes at a delicate juncture for Glencore, which is facing regulatory delays to its £50bn merger with Xstrata and has had to battle accusations this week that it profits from child labour.
Business committee chairman, Adrian Bailey MP, compared Glasenberg to Kraft boss Irene Rosenfeld, who infamously refused to appear before MPS to discuss the £11bn takeover of Cadbury.
‘It appears to be much the same as we had with Irene Rosenfeld,’ he said. ‘The Murdochs recognise the toxic nature of a refusal and whatever their sins they did come and allow themselves to be questioned. Why aren’t others prepared to do the same?’
South African-born Glasenberg cannot be compelled to appear because he is a foreign national. Instead, he will send Glencore’s head of tax Dr Tim Scott and Emmanuel Mutati, chairman of Mopani Copper Mines, the Zambian subsidiary which has been the subject of intense scrutiny over its environmental and tax record.
A Glencore spokesman said Scott and Mutati were best placed to speak to the committee, which visited Mopani last month. But the decision has enraged campaign groups who say Glencore should be more transparent about how much tax it pays in some of the world’s poorest countries.
‘It would be easier to believe the company was paying its fair share in taxes if it revealed far more about its finances around the world,’ said Joe Stead, senior economic justice adviser at charity Christian Aid.
‘Otherwise, it’s hard to avoid the impression that Glencore has something to hide. We hope MPS will pursue this with the company.’
Anti-poverty group Action Aid said it was ‘disappointed that Ivan Glasenberg won’t be explaining Glencore’s tax practices in person’.
The committee is examining ways that Britain can help developing countries improve their tax collection systems in order to wean themselves off foreign aid.
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