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Trafigura fined $3m in landmark bribery ruling

The commodities trader was convicted by Switzerland’s highest court

It is the first time an entire company has been convicted by Switzerland’s federal court, which also convicted former chief operating officer Mike Wainwright

SWITZERLAND’s federal court has convicted commodities trading giant Trafigura of bribery charges in a landmark first.

Trafigura, charged through its Dutch holding company Trafigura Beheer BV, was charged with failing to prevent alleged unlawful payments via a third party to a former employee of Sonangol, the Angolan state energy company.

The court ruled that the individual favoured the interests of Trafigura as a result and the Singapore-based company benefited from contracts worth almost $150m.

The court ruled that organisational failures within Trafigura made it possible for the bribery offences to be committed, and as a result imposed a fine of CHF3m ($3.3m). Trafigura was not fined the maximum CHF5m as the court recognised that it had compliance procedures in place.

Former chief operating officer Mike Wainwright was handed a 32-month jail sentence, part of which is suspended, for his role in the scheme.

Both Wainwright and Trafigura can appeal the decision, sentences are not imposed until all legal proceedings have concluded. The Swiss court highlighted that all defendants “continue to benefit from a presumption of innocence”.

It’s the first time an executive of a large commodities company has been convicted in a Swiss court and the first time a commodities trader has been found guilty of bribery offences.

Trafigura said it was “disappointed by today’s decision in Switzerland concerning Trafigura Beheer BV and is reviewing the matter”.

“Trafigura has invested significant resources in strengthening its compliance programme over a number of years. This includes implementing mandatory training for all staff, continuously strengthening its compliance policies, procedures and controls, and taking the decision to prohibit the use of third parties for business origination with effect from 2019,” it said.

 

 

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