Global Witness
New documents related to a case in the UK high court suggest that controversial middleman Dan Gertler received and paid millions in bribes on behalf of Eurasian Natural Resources Corporation (ENRC) in Democratic Republic of Congo.
Lire le communiqué de presse de Global Witness relatif aux activités de l’entreprise ENRC en République Démocratique du Congo Lire le rapport de Global Witness aux actionnaires de ENRC
Shareholders of London-listed Eurasian Natural Resources Corporation will meet on Friday 28 December to vote on a $550 million deal aimed at buying out its main copper-and-cobalt mining partner in the Democratic Republic of Congo.[i] A representative of Global Witness, holding one share in the FTSE100 company, will vote against it because of fears over corruption risks.[ii]
Global Witness raised repeated concerns of corruption risks over opaque mining deals in Congo The UK’s Serious Fraud Office (SFO) announced yesterday that they are opening a criminal investigation into FTSE 100 mining company Eurasian Natural Resources Corporation (ENRC). The SFO said that: “The focus of the investigation will be allegations of fraud, bribery and corruption relating to the activities of the company or its subsidiaries in Kazakhstan and Africa.”
En français Global Witness expressed alarm at reports that FTSE-100 listed miner ENRC may be close to a deal to buy out Congolese mining assets belonging to businessman Dan Gertler. Companies associated with Mr Gertler have been the subject of a Global Witness investigation into possible corruption.
When Financial Conduct Authority director David Lawton testifies to MPs tomorrow, he must explain how the regulator allowed a company facing serious corruption allegations to list in London and then depart while it was under criminal investigation. ENRC delists from the London Stock Exchange today, following a buy-out by its founders. Despite calls by Global Witness to block the transaction, the FCA and its predecessor, the Financial Services Authority, failed to act. The Business, Innovation and Skills select committee should demand an explanation.
British MPs have launched a crucial debate on how authorities tackle corruption by posing tough questions to the stock exchange regulator, Global Witness said today. The UK must now seize the opportunity to revamp lax standards on corporate fraud, unravel some of the country's biggest corruption scandals and iron out a glaring conflict of interest at the heart of the listings regime.
From the Daily Mail ENRC has resolved not to buy mineral rights via controversial middlemen who campaign groups say pose an appearance or risk of corruption, the Mail understands. Chairman Mehmet Dalman has taken an increasingly active role in addressing the firm’s reputation for boardroom rows and opaque deals to buy mineral rights in the developing world.
One story that will be sure to develop in 2013 is the controversy around ENRC’s activities in Congo. For the background for this, a good place to start is the Global Witness statement of 23 December: “ENRC shareholders should reject $550 million deal.”
Télécharger le communiqué de presse en français Read Global Witness's memo to ENRC's shareholders Lire le mémo adressé par Global Witness aux actionnaires d’ENRC en français
ENRC must address corruption concerns in DRC and publish findings. Click the link below to download the full memo.