Glencore sets up committee to deal with DoJ subpoena

Glencore said it had set up a boardroom committee to oversee its response to the US Department of Justice subpoena that it received last week.

The 2 July subpoena demanded the company produce documents and other records with respect to compliance with the Foreign Corrupt Practices Act and money laundering laws, relating to the Glencore's business in Nigeria, the Democratic Republic of Congo and Venezuela from 2007 to present.

The Foreign Corrupt Practises Act prohibits US-listed companies from bribing foreign officials for government contracts and other business, and can result in sanctions, fines and penalties up to $25m or twice the gain or loss caused by the violation and imprisonment for up to five years per occurrence.

Glencore's new sub-committee is made up of chairman Tony Hayward, and two independent non-executive directors, Leonhard Fischer and Patrice Merrin.

Hayward said: "Glencore takes ethics and compliance seriously throughout the group. The company will cooperate with the DOJ, while continuing to focus on our business and seeking to maximise the value we create for our diverse stakeholders in a responsible and transparent manner."