A prominent Swiss commodity trader faces a corruption verdict from the Federal Criminal Court. Trafigura and three individuals, including former head of operations Mike Wainwright, were found guilty of bribing an Angolan official. Wainwright received a 32-month sentence, while a middleman was given 24 months. Trafigura was fined 3 million Swiss francs and ordered to pay $145 million in compensation. The case marks a significant moment in holding companies accountable for foreign bribery.
Corruption Verdict for Swiss Commodity Trader
The shadows of the past have finally caught up with a prominent Swiss commodity trader. On Friday, the Federal Criminal Court in Bellinzona delivered its verdict on the corruption charges involving Trafigura, a company with significant operations in Geneva. The court found three individuals, along with Trafigura itself, guilty of various corrupt practices.
Bribery and Sentencing Details
A middleman, previously employed by Trafigura, was ruled by the court to have disbursed bribes totaling nearly 5 million Swiss francs to an Angolan official between April 2009 and October 2011. Consequently, he received a conditional prison sentence of 24 months.
Mike Wainwright, who was the head of operations at Trafigura at the time, was held responsible for orchestrating these bribes. He faces a sentence of 32 months, with a mandatory minimum of 12 months to be served. This marks a historic moment as it is the first time a senior executive from a major Swiss corporation has been convicted for corruption abroad. Wainwright left the company last March and is now retired.
The Angolan official involved, Paulo Gouveia Junior, former CEO of an Angolan subsidiary of the state oil firm Sonangol, received a partially conditional sentence of 36 months, with 14 months being unconditional.
The Federal Criminal Court criticized Trafigura for its lack of organizational safeguards, stating that the company failed to implement the necessary measures to prevent such illegal payments. As a result, Trafigura was fined 3 million Swiss francs and must also pay approximately 145 million dollars in compensation, reflecting the profits gained through bribery.
The late Claude Dauphin, co-founder of Trafigura, was also implicated in the trial. Evidence suggested he was aware of the corrupt activities in Angola. Internally, he referred to the middleman as “Mr. Non-Conform,” indicating an awareness of the dubious nature of the payments. His family viewed the trial as a posthumous confrontation with their former leader.
Industry Implications and Future Steps
Trafigura has publicly denied all allegations during the trial and expressed regret over the court’s decision. The Federal Prosecutor’s Office welcomed the verdict, viewing it as a strong message in the fight against cross-border corruption in the commodity sector.
Although the verdict is not yet conclusive and appeals are possible, Trafigura has indicated plans to contest the ruling. The appeal will be taken to the appeals chamber of the Federal Criminal Court, and Wainwright’s legal team has stated their intention to pursue this route as he maintains his innocence.
This case stood out as it was the first time the Federal Criminal Court evaluated a company’s accountability for bribing foreign officials in Switzerland. Previous allegations against other trading giants like Glencore, Gunvor, and Vitol were settled outside of court.
In light of these events, major trading firms assert that the industry has undergone significant changes. Trafigura claims to have bolstered its compliance systems, including mandatory training for employees and discontinuing relationships with external intermediaries since 2019. Today, the internal procedures for closing commodity deals are reportedly more rigorous than in the past.