Dan Gertler – Glencore, Nikanor, Fleurette, Limajo – Arm’s Length, probably not, Wholesale Ownership of DRC

Glencore Gave Loans to Businesses Linked to Suspect Congo Dealings

Documents show mining giant provided nearly $1 billion in loans and advances to aid investments by accused businessman Dan Gertler

A Glencore copper operation in the Democratic Republic of Congo.

Swiss mining giant Glencore GLNCY -0.98% PLC provided nearly $1 billion in loans and advances to companies associated with an Israeli businessman accused of having corrupt ties to government officials in the Democratic Republic of Congo, according to documents reviewed by The Wall Street Journal.

The loans, made over a roughly 10-year period starting in 2007, were designed in part to help finance investments by the businessman, Dan Gertler, in copper-mining operations in Congo alongside Glencore, the documents show.

The amount of the loans—more than previously reported—highlights the financial ties between Glencore and Mr. Gertler during their decadelong partnership in Congo. The relationship has been a focus of U.S. and Canadian authorities, who have been investigating the company’s Congo operations and ties to Mr. Gertler.

Glencore, the globe-spanning mining behemoth and trading house run by Chief Executive Ivan Glasenberg, for years has pushed back against complaints about its ties to Mr. Gertler. Mr. Gertler and his main company in Congo, Fleurette Group, have denied wrongdoing.

Analysts say mounting concerns about Glencore’s Congo operations have contributed to a decline in the Swiss company’s share price.

The details about the loans are contained in the Paradise Papers, a trove of documents from a Bermudan law firm obtained by the International Consortium of Investigative Journalists and the German newspaper Süddeutsche Zeitung, and shared with The Wall Street Journal. The papers first surfaced in late 2017.

Glencore has disclosed some of the lending to Mr. Gertler in broad strokes. A 2017 deal to buy out Mr. Gertler’s stakes in two Congo mines, for instance, folded in $556 million in debt—including $120 million in interest—that Mr. Gertler owed Glencore, the company said at the time. The cash payment in the deal was about $534 million.

The documents, though, detail a series of specific transactions in which Glencore helped to finance Mr. Gertler’s business interests in Congo. Glencore’s chief financial officer frequently signed off on documents associated with the loans.

The overall value of the loans and many of their details haven’t previously been reported.

A spokesman for Glencore declined to comment on the specifics of the loan agreements. In response to a 2014 report by London-based corruption watchdog Global Witness about Glencore’s mining deals in Congo with Mr. Gertler, Glencore said all transactions with the Israeli businessman’s companies “have been conducted on arm’s-length terms, and all public disclosure requirements applicable to us have been complied with.”

A spokesman for Fleurette Group said, “Loans made to Fleurette and its related companies were negotiated on arms-length commercial terms.” Any implication that the loans were improper is wrong, the spokesman said. “Fleurette has operated transparently and in line with all applicable laws during its interactions with Glencore,” he said, adding that all loans were used for legitimate purposes and were repaid.

Documents reviewed by the Journal show that in 2011 a company controlled by Mr. Gertler owed $300 million to a Bermuda affiliate of Glencore, Limajo International Inc., a previously undisclosed debt.

By the end of 2014, Mr. Gertler’s company owed Limajo $510 million, the documents show.

Glencore’s ties to Mr. Gertler date to the mid-2000s, when both invested in Nikanor PLC, a London-listed Congolese copper operator. In 2007, Glencore lent about $250 million to a company controlled by Mr. Gertler, and that company used the funds to purchase a stake in Nikanor, according to the documents.

Mr. Gertler later used about $61 million in Glencore funds to amass shares in another Congo mine operator, Katanga Mining Ltd. , after it merged with Nikanor, the documents show. Glencore invested in Katanga alongside Mr. Gertler and eventually came to control it.In total, Glencore provided nearly $900 million in loans and advances to Mr. Gertler’s companies, according to the documents. Some of that amount likely included accrued interest on some of the loans, the documents show.

Glencore’s Katanga Mining, in addition, made about $80 million in advances to a company controlled by Mr. Gertler from royalties he was entitled to receive, according to Katanga’s public filings. Glencore purchased Mr. Gertler’s stake in Katanga in 2017.

The U.S. Treasury Department in December 2017 sanctioned Mr. Gertler, accusing him of trading on a friendship with Congo President Joseph Kabila to amass a fortune through “opaque and corrupt” deals on behalf of multinational companies seeking to do business in Congo. Mr. Gertler has declined to comment on the specifics of the allegations.

Last month, Canada’s main stock-market regulator said Katanga Mining hid from investors the risks associated with its reliance on Mr. Gertler. The Ontario Securities Commission said Katanga, which trades in Toronto, paid associates of Mr. Gertler “to maintain relations” with the Congolese government.The

Fleurette spokesman said last month the company “has always acted appropriately and with integrity in the DRC. Nothing has ever been proven against the company or its executives in a court of law.”

To read the remainder of the article in its original format click here.

Advertisements

Glencore PLC, Loans to Gertler, Leveraging Companies, DRC and Kabila…

Glencore Gave Loans to Businesses Linked to Suspect Congo Dealings

Swiss mining giant Glencore GLNCY -0.60% PLC provided nearly $1 billion in loans and advances to companies associated with an Israeli businessman accused of having corrupt ties to government officials in the Democratic Republic of Congo, according to documents reviewed by The Wall Street Journal.

The loans, made over a roughly 10-year period starting in 2007, were designed in part to help finance investments by the businessman, Dan Gertler, in copper-mining operations in Congo alongside Glencore, the documents show.

The amount of the loans—more than previously reported—highlights the financial ties between Glencore and Mr. Gertler during their decadelong partnership in Congo. The relationship has been a focus of U.S. and Canadian authorities, who have been investigating the company’s Congo operations and ties to Mr. Gertler.

Glencore, the globe-spanning mining behemoth and trading house run by Chief Executive Ivan Glasenberg, for years has pushed back against complaints about its ties to Mr. Gertler. Mr. Gertler and his main company in Congo, Fleurette Group, have denied wrongdoing.

Analysts say mounting concerns about Glencore’s Congo operations have contributed to a decline in the Swiss company’s share price.

The details about the loans are contained in the Paradise Papers, a trove of documents from a Bermudan law firm obtained by the International Consortium of Investigative Journalists and the German newspaper Süddeutsche Zeitung, and shared with The Wall Street Journal. The papers first surfaced in late 2017.

Glencore has disclosed some of the lending to Mr. Gertler in broad strokes. A 2017 deal to buy out Mr. Gertler’s stakes in two Congo mines, for instance, folded in $556 million in debt—including $120 million in interest—that Mr. Gertler owed Glencore, the company said at the time. The cash payment in the deal was about $534 million.

The documents, though, detail a series of specific transactions in which Glencore helped to finance Mr. Gertler’s business interests in Congo. Glencore’s chief financial officer frequently signed off on documents associated with the loans.

The overall value of the loans and many of their details haven’t previously been reported.

A spokesman for Glencore declined to comment on the specifics of the loan agreements. In response to a 2014 report by London-based corruption watchdog Global Witness about Glencore’s mining deals in Congo with Mr. Gertler, Glencore said all transactions with the Israeli businessman’s companies “have been conducted on arm’s-length terms, and all public disclosure requirements applicable to us have been complied with.”

A spokesman for Fleurette Group said, “Loans made to Fleurette and its related companies were negotiated on arms-length commercial terms.” Any implication that the loans were improper is wrong, the spokesman said. “Fleurette has operated transparently and in line with all applicable laws during its interactions with Glencore,” he said, adding that all loans were used for legitimate purposes and were repaid.

Documents reviewed by the Journal show that in 2011 a company controlled by Mr. Gertler owed $300 million to a Bermuda affiliate of Glencore, Limajo International Inc., a previously undisclosed debt.

By the end of 2014, Mr. Gertler’s company owed Limajo $510 million, the documents show.

Glencore’s ties to Mr. Gertler date to the mid-2000s, when both invested in Nikanor PLC, a London-listed Congolese copper operator. In 2007, Glencore lent about $250 million to a company controlled by Mr. Gertler, and that company used the funds to purchase a stake in Nikanor, according to the documents.

Mr. Gertler later used about $61 million in Glencore funds to amass shares in another Congo mine operator, Katanga Mining Ltd. , after it merged with Nikanor, the documents show. Glencore invested in Katanga alongside Mr. Gertler and eventually came to control it.

In total, Glencore provided nearly $900 million in loans and advances to Mr. Gertler’s companies, according to the documents. Some of that amount likely included accrued interest on some of the loans, the documents show.

Glencore’s Katanga Mining, in addition, made about $80 million in advances to a company controlled by Mr. Gertler from royalties he was entitled to receive, according to Katanga’s public filings. Glencore purchased Mr. Gertler’s stake in Katanga in 2017.

The U.S. Treasury Department in December 2017 sanctioned Mr. Gertler, accusing him of trading on a friendship with Congo President Joseph Kabila to amass a fortune through “opaque and corrupt” deals on behalf of multinational companies seeking to do business in Congo. Mr. Gertler has declined to comment on the specifics of the allegations.

Last month, Canada’s main stock-market regulator said Katanga Mining hid from investors the risks associated with its reliance on Mr. Gertler. The Ontario Securities Commission said Katanga, which trades in Toronto, paid associates of Mr. Gertler “to maintain relations” with the Congolese government.

To read the remainder of the article click here.

Continue reading

Dan Gertler – One of the 13 Most Serious Human Rights Abusers –

Israeli billionaire Dan Gertler

Israeli Diamond Billionaire Sanctioned By U.S. Anti-Corruption Law

WASHINGTON (JTA) — Dan Gertler, an Israeli with extensive investments in the Democratic Republic of the Congo, is among the first people targeted for sanctions under a new U.S. anti-international corruption law.

Dan Gertler is among “13 serious human rights abusers and corrupt actors,” the Treasury Department said in a release Thursday, who would be sanctioned under the Global Magnitsky Act passed in 2016. It is the first time the law is being applied.

Gertler “is an international businessman and billionaire who has amassed his fortune through hundreds of millions of dollars’ worth of opaque and corrupt mining and oil deals in the Democratic Republic of the Congo,” the release said. “Gertler has used his close friendship with DRC President Joseph Kabila to act as a middleman for mining asset sales in the DRC, requiring some multinational companies to go through Gertler to do business with the Congolese state.”

As a result, mining assets are consistently underpriced upon sale to Gertler or his fronts, and then resold at real value, Treasury said, with the resultant kickbacks to Gertler and Kabila costing the Congo upward of $1 billion.

Read more: https://forward.com/fast-forward/390710/israeli-diamond-billionaire-sanctioned-by-us-anti-corruption-law/

 

 

 

Read more: https://forward.com/fast-forward/390710/israeli-diamond-billionaire-sanctioned-by-us-anti-corruption-law/

Dan Gertler and Sanctions – Congo Deals

US sanctions add pressure on Israeli businessman Dan Gertler for Congo deals

A round of sanctions announced by the US targeting human rights and corruption has named Israeli businessman Dan Gertler for his “opaque and corrupt mining and oil deals” in the Democratic Republic of Congo, adding further pressure on companies that have done business with him.

The US Treasury said Mr Gertler had used his friendship with Joseph Kabila, the DRC president, to act as a middleman for sales of mining assets in the country, one of the world’s largest producers of copper and cobalt.

“Today, the United States is taking a strong stand against human rights abuse and corruption globally by shutting these bad actors out of the US financial system,” Steven Mnuchin, US treasury secretary, said. The sanctions increase the pressure on companies to cut ties with Mr Gertler or his related companies, since US citizens are prohibited from dealing with sanctioned individuals. In February mining giant Glencore announced it would pay $534m to Mr Gertler to buy him out of two copper mines in the DRC.

https://www.ft.com/content/a879743f-f80c-356d-bdb7-9ecd95fcd672

Dan Gertler, the Systematic Destruction of Obstacles and the Lawyers Involved – The Gertner Brothers – PART I

THE SYSTEMATIC DESTRUCTION OF MOISES GERTNER AND HIS BROTHER BY DAN GERTLER, HIS LAW FIRMS, HIS PR FIRMS HIS RELATIONSHIPS AND A SERIES OF COMPANIES, TRUSTS AND PARTNERS

LostMessiah – 23 June 2017

Earlier this week we published an article regarding Dan Gertler which made reference to a series of other articles, including to a blog post of paramount importance entitled: “Exposing African Mafia and Corruption” in a Blogspot – Purifying Africa. Interestingly the information published by Purifying Africa, though a series of what appears to be leaked emails from a law firm, seems to have been largely ignored by mainstream media. We believe it speaks volumes to the extent to which the Gertler empire will go to destroy its perceived adversaries.

The emails include correspondence written by an attorney by the name of Dory (Avigdor) Klagsbald of a law firm in Israel. The parties who are cc’d or otherwise mentioned in those emails include attorneys with Mishcon de Reya LLP, a series of consulting firms (namely public relations firms), and attorneys from Millbank, Tweed, another law firm. 

The sole purpose of those emails appear to be outlining a strategy to unwind an individual voluntary arrangement (IVA) which was a negotiated agreement between Islandic Bank Haupthing and the Gertner brothers for repayment of a loan at what was to have been an undisclosed amount. That effort continues and has all but destroyed Moises Gertner.

It should be noted that much of the alleged payments of that loan and corresponding guarantees are in the form of interest and fees. We believe the current claims by CFL are tantamount to extortionery at this juncture, particularly since these events have dragged on for years and there were agreements in place to settle many of those loans. CFL Limited has sought and continues to seek systematically to undo formerly agreed upon settlements (Case No. 3482 of 2015 / BR-2015-02338).

The emails between Dori Klagsbald in our analysis refer in no uncertain terms to a methodology for undoing the IVA and dragging the Gertner brothers’ names through the silt, with what can only be deemed to be a carefully constructed PR campaign (steps to be taken “if necessary”).  The party in whose interest this carefully crafted scheme has been devised, is an Israeli owned company CFL Finance (a Dan Gertler company). CFL was in 2015 allegedly owed only 12Million Pounds, a paltry amount in comparison to the 557M pounds that was the subject of the IVA and the agreed repayment to Haupthing. Again, to reiterate much of the currently disputed money is comprised of interest and penalties. The fact that it is still ungoing and leaves the Gertner brothers in a constant stated of disquiet is likely of greater value to Gertler.

We reiterate the articles and the historical context should not be taken in a vacuum. In fact, we contend that the death of Katumba , the information regarding the Fleurette Group, Glencore Plc, Ellesmere Global (BVI) can similarly not be read exclusive of the other articles and the timeframe involved. When read in context with an earlier published Ha’Aretz article and dozens of other articles and publications, it is abundantly clear that Dan Gertler, along with his attorneys and public relations firms, has since at least 2013 made concerted and systematic efforts in no uncertain terms to destroy anyone or anything that stands in the way of his constantly increasing wealth.

In the case of the death of Katumba, we can only speculate. In the ongoing legal battles against Moises Gertner and his brother who were at one time business partners of Dan Gertler, we maintain that Gertler was and continues to be intent upon decimation and they continue to be his victims.

We begin describing this saga by re-posting the 42 screenshots taken from the Purifying Africa Blogspot.

We will continue by slowly introducing the cast of questionable figures including another character in this case of Gertler v. Gertner, an Israeli lawyer named Yaakov Weinrot. We note Mr. Weinrot claims to have been owed many millions of dollars by the Gertner brothers, was apparently hired by them in the context of their dealings in the Congo; but also apparently participated in the smear campaign against them on behalf of Dan Gertler. We leave that piece for another day.

Our sources are publicly available. As many of the articles state, the Congo is one of the worlds most mineral-rich countries. And yet, it is the poorest and least developed. The Congolese people are the victims of extraordinary greed, the greed of their government, the greed of so-called “investors” like Dan Gertler and the corresponding corruption and fraud.

Finally, we note in the interest of full disclosure that we have not independently investigated the Gertner brothers on their other dealings, most of which appear to have been real estate investments. We have found significant evidence of charitable giving but make no judgment one way or the other. We firmly believe them to be victims of Dan Gertler and his  ‘mafia’ of attorneys, PR firms, and co-conspirators. We write the series of exposés in the hopes that perhaps the Gertner brothers and numerous other victims of Dan Gertler and his associates’ greed will find justice.

The Images:

 

 

With Israeli Billionaires Profiting From Human Capital in Congo, What Responsibility do they Play?

 

Congo rights group: Army kills 12 rebels after Beni attacks

BENI, Congo — Congo’s army fought off attacks in and around the eastern city of Beni on Thursday, killing at least 12 assailants and capturing seven, a local human rights group said.

Two soldiers also were killed in the fighting and several people were wounded, including students taking exams, said Omar Kavota, executive director of the Center for Studies of Peace and Defense of Human Rights.

Kavota blamed a new rebel coalition for the bombing of a school and attempted attacks on a women’s prison, a police station and the town hall.

The death toll could rise as Congo’s military pursues other attackers, he said.

Beni Mayor Nyonyi Bwanakawa blamed the attack on Mai Mai rebels. Kavota, however, warned that a new rebel coalition has formed outside Beni after armed men on June 11 attacked the city’s central Kangbayi prison, killing at least 11 and freeing 900 prisoners.

The new coalition, which Kavota called the National Revolutionaries Movement, is likely composed of rebels from the Mai Mai, Allied Democratic Forces and former M23 members who escaped prison.

Kavota said the new coalition may have external political and military support, given the logistics of the attacks, and he called on the government and military to quickly dismantle the group.

Kavota, whose organization tracks civilian deaths in the region, also called on the military to increase protection of civilians and public places.

Eastern Congo is home to multiple armed groups that compete for control of the region’s vast mineral resources.

http://www.startribune.com/congo-rights-activist-says-army-kills-7-attackers-in-beni/430095063/

SEE ALSO:

NEW in the last 10 minutes
In the last hour
UN extends and expands sanctions on Congo South African Broadcasting Company 12:24
In the last 2 hours
In the last 4 hours
In the last 6 hours
In the last 8 hours
Earlier today

Yesterday
Congo peacekeepers accused of sex abuse to leave CAR Al Jazeera, Qatar 21:31 Wed, 21 Jun
UN Says Congo Withdrawing Troops From CAR Mission Voice of America 21:25 Wed, 21 Jun
Supporting the Democratic Process in the DRC Voice of America 20:25 Wed, 21 Jun
“Sexus Plexus Nexus” Pitchfork 14:00 Wed, 21 Jun
Turkish deputy PM hails Turkey-Congo relations Anadolu Agency 13:44 Wed, 21 Jun
‘UN unable to solve the crisis in DRC’ Deutsche Welle 13:02 Wed, 21 Jun
Phil Clark: UN un able to solve the crisis in DRC Deutsche Welle 12:42 Wed, 21 Jun
Understanding vaccine derived polio outbreaks Rotary International 11:30 Wed, 21 Jun
Congo’s Escalating Political Crisis Sends Millions Into Exile The Wall Street Journal 06:19 Wed, 21 Jun
The DRC can learn from Lumumba as its internal crisis deepens Mail & Guardian Africa 05:49 Wed, 21 Jun
First Cobalt announces Kipoi East exploration program Energy Business Review 04:30 Wed, 21 Jun
Civilians bear the brunt of fresh fighting in DRC Al Jazeera, Qatar 03:17 Wed, 21 Jun
Tuesday
Congolese Militia Is Accused of Atrocities The New York Times 22:23 Tue, 20 Jun
No aid for Kasaï crisis victims in the DRC New Vision, Uganda 17:54 Tue, 20 Jun
Sexual Violence Fuels Vicious Recruitment Cycle in Congolese Militia Inter Press Service News Agency 16:04 Tue, 20 Jun

 

Gertler, a Wedding, Congo, Kabila and Katumba

1280x720

https://mg.co.za/article/2012-08-23-suspicion-circles-israeli-diamond-maven-who-understands-negroes

Suspicion circles Israeli diamond maven who ‘understands negroes’

Recorded in about 2 00, the revealing slur was made during the early days of the Israeli diamond ­scion’s ambitious Democratic Republic of Congo venture.

It is a venture that gained him an unsavoury reputation after he ingratiated himself with two successive DRC presidents and a shadowy presidential adviser and kingpin while laying claim to a host of sought-after mining concessions – in often shady circumstances and on often questionable terms.

Now Gertler is dogged by investigations in Israel, where it is alleged he made large payments to companies said to have been controlled by Foreign Minister Avigdor Lieberman while Lieberman held other public positions.

Analysis: Sexwale’s African ventures court controversy

Gertler denied the claims, whereas Lieberman declared that he had sold his shareholdings. Prosecutors and police remain suspicious.

An ultra orthodox Jew, Gertler hails from an influential line of diamond traders. His grandfather, Moshe Schnitzer, founded Israel’s Diamond Exchange and Gertler established his own firm when he was just 22. He arrived in Kinshasa soon afterwards.

Military training
This was in about 1999. The DRC was tied up in a civil war and then-president Laurent Kabila needed money. Gertler made short work of befriending the president and bagged his first big deal: exclusive rights to export the country’s artisanal diamonds. In return, Gertler was said to have promised Kabila $20million on unclear terms and it was alleged that he had promised to organise arms and military training for Kabila’s fighters.

However, the details of whatever military assistance was discussed with Kabila senior have been fiercely disputed in Israeli courts after Yossi Kamisa – a former Israeli border policeman said to have been roped in for the task – sued Gertler for breach of contract in 2004 after he was cut from the deal.

In Kamisa’s version, he was summoned to Lieberman’s Jerusalem office in July 2000 and told that he and Gertler were “partners” in  “future transactions with tremendous economic potential”. In court papers Kamisa claimed: “Gertler explained that paying bribes is very accepted in Congo and that his stay in the country, connected with making the transaction, had already cost him more than a million dollars.”

Gertler has consistently and vehemently denied Kamisa’s claims and he and Lieberman later reached a settlement with Kamisa retracting his allegations, causing the court to reject the case outright.

In his appeal against the dismissal of the case, which was also rejected, Kamisa presented a transcript of a disturbing conversation between the two. Gertler, who was removing Kamisa from the deal, offered his version of African politics, as reported by the Israeli newspaper Haaretz: “A kushi [a derogatory Hebrew term for a black person] who wants something from you ‘sits on your vein’ … A negro likes to talk and make promise after promise, blah blah blah …”

Politics of negroes
Kamisa then claimed that, if it was not for him, Gertler would not have landed the concession, to which Gertler responded: “Yossi, either you are mentally ill or I don’t know what. Are you saying that the diamond contract was signed because of you?” And then: “Yossi, you don’t get it. I understand the politics of negroes.”

Lieberman has strenuously denied his role as described by Kamisa.

After Kabila senior was assassinated in 2001 and succeeded by his son, Joseph, Gertler was able to rekindle relations with the new incumbent as well as his notorious adviser, the late Augustin Katumba Mwanke. Gertler then moved on to claim more lucrative mining concessions in the country.

More recently, Gertler has been hammered by human rights campaigners and international media for “secretly” acquiring mining assets from the DRC government using a complex web of offshore companies. Whereas Gertler’s role in these companies has either been deduced or acknowledged, the companies’ full lists of beneficiaries remain unknown.

The most infamous example was the Kolwezi copper and cobalt tailings project, “grabbed and flipped” from First Quantum through a Gertler company to Eurasian Natural Resources Corporation (ENRC) in 2010.

Others described by human rights campaigner Global Witness include:

  • SMKK copper and cobalt mine: A Gertler-linked company acquired a stake in this mine from the DRC for $10million in February 2010 and sold it to ENRC for $75million that June.
  • Kansuki copper and cobalt mine: The DRC transferred a stake to a Gertler company in July 2010. A month later, Glencore took control of half the stake but is financing the entire mine development.
  • In May 2011 the DRC government transferred the remaining 25% stake in Kansuki to another Gertler “associated” company for $17million. Global Witness cited valuations suggesting the stake was worth between $86million and $209million.
  • Mutanda copper and cobalt mine: The DRC sold an allegedly undervalued 20% stake to another offshore Gertler company in March 2011.

Gertler does not deny that he “enjoys a close friendship” with Joseph Kabila and he openly attended Katumba’s funeral early this year. He also claimed to have served in the mysterious role of the Congo’s “honorary consul” in Tel Aviv.

But through a spokesperson he ­stridently rejected all claims of impropriety.

According to him, his proximity to the Kabilas and Katumba had no bearing on his business deals. And, he said, the mining assets were purchased, not “grabbed”, at a fair price and sold – “not flipped” – thus bringing significant investment into the DRC.

Gertler prefers to draw attention to such investment, claiming to have spent millions on “community support and environmental programmes” in the DRC, as well as the Chabad House he finances in Kinshasa, advancing his orthodox views.

Please see the original article: https://mg.co.za/article/2012-08-23-suspicion-circles-israeli-diamond-maven-who-understands-negroes