Glencore probed for kickback allegations-report
Tuesday, Mar 10, 2009
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NEW YORK, March 7 (Reuters) - U.S. and Bahrain prosecutors are probing about $4.6 million in alleged payments made by employees of Glencore International AG [GLEN.UL] to bank accounts controlled by then-employees of Aluminum Bahrain, the Wall Street Journal reported.
Citing people familiar with the matter, the report said investigators were looking at alleged payments made by employees of global commodities firm Glencore to a group of accounts at LGT Bank in Liechtenstein.
The report said LGT records showed the accounts were set up and controlled by employees of Aluminum Bahrain, also known as Alba, who have since left the company.
The report cited a spokesman for Switzerland-based Glencore as saying Glencore was aware of a criminal investigation of former employees of Alba by authorities in Bahrain and that Glencore had complied with a request for information through "relevant authorities".
"Glencore has not made any inappropriate payments," the spokesman was quoted as saying.
The report said the inquiries into Glencore were indirectly related to a previously disclosed federal grand jury investigation in U.S. District Court for Western Pennsylvania involving alleged payments to officials of Aluminum Bahrain by Alcoa Inc.
The report said Bahrain officials had publicly said they planned to charge the former Alba employees with money laundering.