TRAFIGURA Accused of Channeling Bribes to Angolan Official
Swiss Prosecutors Allege Company’s Former Parent Failed to Prevent Unlawful Payments
Trafigura, a trading house, is heading to court on December 2, facing charges that its former parent company Trafigura Beheer BV failed to prevent unlawful payments over the 2009 to 2011 period, alongside former senior executive Mike Wainwright, a Swiss middleman, and a senior Angolan public official.
Alleged Scheme
The 150-page indictment released on Monday detailed how the bribes were allegedly paid and for the first time claimed that Trafigura’s late founder and chief executive officer Claude Dauphin was a central participant in the scheme. The indictment lays bare how Trafigura’s most senior executives, up to and including Dauphin, were allegedly involved in corruption.
Payment Flows
The indictment describes an opaque system of payments. A letter on Trafigura-headed paper arrived at Credit Agricole SA’s Geneva branch, recommending a banking relationship be set up in favor of Paulo Gouveia, CEO of the fuel retail arm of Angola’s state energy company. Gouveia received funds totaling the equivalent of US$5.79 million between July 10, 2009 and October 20, 2011.
Court Proceedings
If convicted, Trafigura faces a maximum fine of just 5 million Swiss francs (S$7.5 million), roughly what the company made every six hours last year from trading oil, metals, and other commodities, plus repayment of the illicit profit of over US$140 million. Switzerland’s Federal Criminal Court has scheduled three weeks for the trial and listed two reserve dates in late January if necessary.
Conclusion
The trial is significant as it could be the first time in Swiss history a company has been convicted at trial for allowing the payment of bribes. Switzerland is already under pressure to prove it can be tough on a commodities industry that’s long operated under a light regulatory touch.
Frequently Asked Questions
Q: What are the charges against Trafigura?
A: The company is accused of failing to prevent unlawful payments to an Angolan official between 2009 and 2011.
Q: Who is involved in the alleged scheme?
A: The indictment names Mike Wainwright, a former senior executive, and Paulo Gouveia Junior, a senior Angolan public official, as co-defendants.
Q: What is the maximum fine Trafigura faces?
A: The company faces a maximum fine of 5 million Swiss francs (S$7.5 million), plus repayment of the illicit profit of over US$140 million.
Q: What is the significance of this trial?
A: The trial could be the first time in Swiss history a company has been convicted at trial for allowing the payment of bribes, and Switzerland is under pressure to prove it can be tough on the commodities industry.
