In a historic ruling, Switzerland's highest court has convicted commodities giant Trafigura and former COO Mike Wainwright of bribery, imposing a substantial fine on the company and sentencing Wainwright to 32 months in prison. The case, involving illicit payments to gain access to Angola's oil market, highlights ongoing concerns about corruption in the commodity trading sector.
Former Trafigura Executive Sentenced for Bribery in Groundbreaking Ruling
Former Trafigura Executive Sentenced for Bribery in Groundbreaking Ruling
Mike Wainwright, the former COO of Trafigura, receives a 32-month prison sentence as Switzerland's court convicts the firm for bribery linked to Angola's oil market.
In a landmark decision, Switzerland's highest court has found commodities trading company Trafigura and its former chief operating officer Michael Wainwright guilty of bribery connected to payments made to access Angola's oil market. This ruling marks the first instance in which an entire corporation has faced charges from the Swiss Supreme Court, alongside the conviction of a top executive, which is an unusual occurrence in bribery cases.
Wainwright received a 32-month prison sentence and the company was fined $148 million (£119 million). This high-profile case was characterized by elaborate financial maneuvers, involving millions of dollars, questionable intermediaries, and a network of offshore shell companies. Evidence presented in court revealed that the firm made nearly $5 million (£4.02 million; €4.81 million) in payments to an executive at Angola's state oil company between 2009 and 2011, facilitated by payments authorized on Trafigura's official documentation.
Despite Trafigura's claims of robust compliance and anti-corruption practices, the investigation uncovered a complex scheme designed to evade oversight. Evidence included numerous documents, emails, and memos that contradicted the company's assertions, revealing a sophisticated arrangement allegedly orchestrated by a middleman referred to as "Mr. Non-Compliant."
This ruling is anticipated to send shockwaves through the global commodity trading community, particularly in Switzerland, where Trafigura and many other trading firms are based. Coincidentally, just before the verdict, a fire broke out at Hotel des Bergues, which had hosted an Angolan official at Trafigura's expense in 2008—an incident that further underscores the implications of the case.
Swiss prosecutors aim to use this case as a precedent to signal the end of a culture that has tolerated such corrupt practices. They brought the case to the highest court, a jurisdiction reserved for severe offenses. As Wainwright prepares to appeal the ruling, he must serve at least one year of his sentence, while Trafigura faces a significant financial penalty that could reshape its operations moving forward.
