Statement on Glencore criminal compensation ruling

International law firm RPC seeks compensation for bribery victim Nigeria

In the recent past, Western companies have been forced by the Courts and the SFO to pay billions in fines for bribery in Africa. However, compensation paid to African countries that are the victim of these bribes makes up a tiny fraction of these amounts – if compensation is paid at all. 

The Application today by the Federal Republic of Nigeria for a criminal compensation payment in the Glencore sentencing was not won. However, the SFO indicated that sums confiscated from Glencore Energy (UK) Ltd in the same proceedings might be returned by HMG to Nigeria. Let us see if that happens…

In any event, Glencore should be encouraged not just by the Courts but by Glencore investors to make voluntary payments to Nigeria. Glencore have so far refused to engage in material discussions on that front. It is difficult to understand why this is the case for a reportedly reformed company and frankly, without action, the fine words of Glencore and its CEO butter no Nigerian parsnips.

The other matter that is important is the very urgent need to reform the laws and guidelines that apply to compensating victims of foreign bribery.  Countries like Nigeria must be heard in court and must stand a real opportunity of compensation in cases where fines that go to either the UK or US  authorities regularly run into the hundreds of millions.

Sam Tate, head of white collar crime and compliance, RPC LLP