Katanga Mining division, a subsidiary of mining giant Glencore and some of its past and present managers, have agreed to pay $22 million fine to Canada’s biggest stock market regulator, according to the Wall Street Journal, which cited a person familiar with the matter.
The regulator blames the company and its managers for concealing the risks in their business dealings with Dan Gertler, an Israeli businessman close to Congolese President Joseph Kabila, the Wall Street Journal reported.
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The regulator to claim that the president was pushing the company to exaggerate its copper production, while at the same time downplaying mining costs, the report says. As a result, the moves may have inflated the miner’s performance, according to the Journal.
The settlement agreement between the Ontario Securities Authority and Katanga, which is listed for trading in Canada, relates to the company’s operations in the Democratic Republic of the Congo between 2016-2014, the newspaper reported.
Canadian regulators are expected to mention current and former managers at Katanga and focus on the company’s ties with Dan Gertler, the Israeli businessman who invested in Katanga in 2008 together with Glencore, the paper reported.
The settlement will probably be announced as early as this week, it said.
