Trafigura Convicted in Landmark Bribery Case, Sentenced to Pay Millions in Fines

Trafigura, a prominent commodity trading firm, and its former Chief Operating Officer (COO) have been convicted of bribery charges by a Swiss court. This marks the first instance of a senior executive at a major commodity trading house being found guilty of corruption.

Sentencing and Fines

* Trafigura's ex-COO, Mike Wainwright, received a 32-month prison sentence, with 20 months suspended.
* Trafigura was found guilty of failing to implement adequate anti-bribery measures and fined 3 million Swiss francs (approximately $3.3 million).
* The company was also ordered to pay $145.6 million in compensation to the Swiss Confederation.

Bribery Scheme

The case centered on allegations that Trafigura bribed an Angolan official with over $5 million in payments and cash gifts in exchange for lucrative oil contracts. The official, Paulo Gouveia Junior, was also found guilty of accepting the bribes. A middleman, Thierry Plojoux, who facilitated the payments, was also convicted.

Judgment and Implications

The verdict is a landmark moment for Switzerland, a crucial hub for the commodities trading sector. It demonstrates Switzerland's commitment to cracking down on corruption in the industry.

The judgment highlights the need for robust anti-bribery systems within commodity trading firms. It also reflects the ongoing scrutiny and investigations into wrongdoing in the industry.

Trafigura's Response

Trafigura expressed disappointment with the decision and stated that it is reviewing the matter. The company emphasized its efforts to strengthen its compliance program, including prohibiting third parties from business origination starting in 2019.

Appeal Process

The verdict is a preliminary decision that can be appealed to the federal criminal appeals court and ultimately to the Swiss Supreme Court. Wainwright's lawyer has confirmed an appeal will be filed.

Significance

The Trafigura bribery case is a significant development in the fight against corruption in the commodity trading sector. It sends a strong message that senior executives can be held accountable for their actions and that companies must prioritize ethical business practices.