OTTAWA (dpa-AFX) - Glencore Plc. (GLCNF.PK, GLNCY.PK, GLEN.L) noted the announcement by Katanga Mining Limited that Katanga has entered with others into a settlement agreement with Canada's Ontario Securities Commission or 'OSC'. Glencore-controlled copper-mining company Katanga will make a payment of C$30 million or US$22.5 million as part of the settlement.
Canadian regulator also fined several of Katanga Mining's executives and former directors to settle allegations that Katanga Mining misstated production figures and hid from investors the risks associated with its reliance on Israeli businessman Dan Gertler in the Democratic Republic of Congo.
Glencore announced the existence of the OSC investigation into Katanga on 20 November 2017 following the completion by Katanga of an internal review of certain of its historic accounting practices and the restatement of Katanga's financial statements. Following the review, Glencore implemented remediation measures to strengthen Katanga's corporate governance, compliance and control processes.
Glencore noted that it is disappointed by the conduct that has led to today's settlement. Glencore has taken appropriate remedial actions in response to this conduct. Glencore is working with Katanga to implement the various changes to improve its reporting and control functions and to address the cultural failures that led to this conduct.
As per the terms of the settlement, Katanga will make a voluntary payment in the amount of C$28.50 million and reimburse Commission costs in the amount of C$1.50 million and submit to a review by an independent consultant of its metal accounting with respect to reporting of production and its financial accounting with respect to the integration of production statistics. The company's Chief Executive Officer, Johnny Blizzard, who has served in such role since February 2015, will resign as a director and officer of the Company, subject to a short transition period until his replacement is appointed.
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