Trafigura, a major player in the commodities trading market, was convicted by the Swiss Federal Criminal Court for corruption involving a foreign public official in Angola. The case, brought before the courts since December 2023, highlights organizational failures in monitoring its intermediaries.
Context and Facts
During the trial held in Bellinzona, in the Italian-speaking part of Switzerland, three individuals were tried in connection with the payment of bribes. Among them was a former executive of Trafigura, as well as an intermediary whose company facilitated the transfer of undue benefits, notably through bank transfers and cash payments. The events took place between 2009 and 2011 and involved significant amounts, with transfers exceeding four million euros and cash payments approaching 600,000 dollars.
Details of the Verdict and Sanctions
The court imposed a fine of 3 million Swiss francs (approximately 3.1 million euros) on Trafigura’s holding company, sanctioning the shortcomings in the group’s internal controls. In addition, prison sentences were handed down: Michael Wainwright, the former Chief Operating Officer, was sentenced to 32 months in prison with partial suspension, including 12 months to be served. A third party, involved in the payment of bribes to a former executive of an Angolan state-owned hydrocarbon distribution company, received a prison term of 36 months, including 14 months served.
Implications for the Sector
The decision, welcomed by the Federal Prosecutor’s Office, marks the first time a company in Switzerland has been convicted for corrupting foreign public officials. This verdict sends a strong signal to the entire commodities sector, emphasizing the need for rigorous oversight of commercial practices. Furthermore, Trafigura—already under scrutiny after pleading guilty in the United States for similar offenses in Brazil—is now reviewing its options in response to this new sanction.
Reactions and Outlook
The group expressed its disappointment with the decision while indicating a review of its internal procedures. Industry players, particularly in the oil trading market, are observing this case as an indicator of the firmness of Swiss jurisdictions in the fight against international corruption.
