Trafigura and Ex-COO Convicted in Historic Bribery Case
On Friday, the Federal Criminal Court in Bellinzona, Switzerland, convicted Trafigura and its former Chief Operating Officer (COO), Mike Wainwright, of bribery charges. This marks the first instance of a senior executive from a major commodity trading house being found guilty of corruption.
Sentencing and Fines
Wainwright received a 32-month jail sentence, with 20 months suspended. Trafigura, charged through its Dutch holding company, Trafigura Beheer BV, was fined 3 million Swiss francs ($3.3 million) for insufficient bribery prevention systems. Additionally, the company must pay $145.6 million to the Swiss Confederation in compensation.
Significance for Switzerland
This verdict underscores Switzerland's efforts to combat corruption within the commodities industry, which has historically faced light regulation. It also sets a precedent for corporate accountability in Switzerland.
Trafigura's Tumultuous Journey
The conviction comes amidst a challenging period for Trafigura, a leading trader of oil, gas, and metals. In recent years, the company has faced allegations of fraud, pleaded guilty to corruption in the US, and settled market manipulation charges.
Evidence Against Trafigura
Swiss prosecutors argued that Trafigura prioritized profits over compliance, with senior executives controlling the oversight committee. The prosecution presented evidence from Mariano Ferraz, a former Trafigura executive, who received a reduced sentence in a separate Brazilian case for his testimony.
Defense Arguments
Trafigura contested the charges, alleging a "crusade" by Swiss prosecutors against the commodity trading industry. They questioned Ferraz's testimony and attempted unsuccessfully to have it dismissed.
Allegations and Convictions
The case involved bribes allegedly paid to an Angolan official, Paulo Gouveia Junior, in exchange for lucrative oil contracts. Gouveia Junior and a middleman, Thierry Plojoux, were also convicted.
Ongoing Legal Process
The verdict is subject to appeal at the federal level and, if necessary, to the Swiss Supreme Court. Until the judgment becomes final, the three convicted individuals benefit from the presumption of innocence.