Congo Faces Setback in $180 Million Legal Battle Over Glencore Settlement

In a blow to the Democratic Republic of Congo (DRC), the International Chamber of Commerce (ICC) has ruled that the country’s legal dispute with Centurion Law Group (CLG) over a failed compensation agreement will proceed as originally filed. This decision marks a loss for Kinshasa in the first round of a high-stakes arbitration case that follows the landmark settlement between the DRC and Glencore.

The South African law firm, which played a pivotal role in securing a $180 million settlement for Congo in 2022, has been seeking compensation for its legal work in the corruption investigations that led to the deal. The settlement arose after Glencore, the world’s leading cobalt producer, was found guilty of bribing government officials in Congo between 2007 and 2018, ultimately agreeing to pay $180 million to resolve all claims related to its operations in the DRC.

While the settlement with Glencore was a significant victory for the DRC, the government has yet to compensate CLG for its legal services. As a result, CLG filed an arbitration case in August 2023, seeking compensation for its role in the investigations and lawsuit. Despite Kinshasa’s attempts to split the case into two separate arguments—one questioning the ICC’s authority and another addressing the merits of CLG’s claims—the tribunal ruled against this, emphasizing that delaying proceedings would only increase costs and prolong the process.

CLG hailed the ruling as a victory for justice and accountability, stating that the case is about more than just financial compensation. “This is about reinforcing the rule of law and establishing that no entity, regardless of its power, is above its obligations,” the firm declared.

The Glencore case itself had far-reaching implications, leading to over $1.5 billion in settlements with governments around the world, including the US, UK, Nigeria, and Brazil. The company admitted to paying over $100 million in bribes to Congolese officials as part of a broader corruption scheme. Despite this, Glencore continues to dominate the DRC’s lucrative cobalt industry, a critical resource for electric vehicle batteries and electronics, while the country’s mining operations have largely failed to benefit its local population.

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