Glencore PLC (LON:GLEN) is reportedly facing an investigation into allegations of bribery in the Democratic Republic of Congo.
Serious Fraud Office investigators are understood to be seeking formal approval for a full probe into Glencore’s dealings with Israeli billionaire Dan Gertler and Democratic Republic of Congo President Joseph Kabila, Bloomberg reported on Friday.
Shares in the mining group fell 6% to 373p in afternoon trading.
Government spokesman Lambert Mende told Bloomberg that Congo was calm about the situation.
"We are ready to take all the blows and we are ready to fight back," Mende said.
“Any final decision on whether to proceed with a formal probe will be up to a committee of SFO senior staff, including interim director, Mark Thompson.”
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Glencore, the SFO and Gertler declined to comment on the report.
The news comes after the US imposed sanctions against Gertler last December on claims he corruptly used his friendship with Kabila to build his fortune.
In 2016, US hedge fund manager, Och-Ziff Capital Management LLC, which funded some of Gertler’s operations in Congo, admitted to conspiring to bribe officials in Congo.
Gertler has denied any wrongdoing but Glencore has cut ties with him and bought out his stakes in their joint venture.
An investigation by the SFO is not the only problem facing Glencore.
It is currently in a dispute with Gertler over royalties he claims the company still owns him after going their separate ways.
Glencore has also been trying to cut ties with Russian aluminium tycoon Oleg Deripaska after the US imposed sanctions against his business empire.
On top of that, Congo’s state miner Gecamines is trying to dissolve its Kamoto copper and cobalt joint venture with a subsidiary of Glencore, blaming the miner for overburdening with debt.