Switzerland Charges Trafigura and Former Top Executive With Bribery

Swiss authorities have formally charged Trafigura, a leading commodity trading firm, and a former high-ranking executive, Mike Wainwright, with bribery related to payments made approximately a decade ago. The charges come following investigations by regulatory bodies in the United States, Brazil, and Switzerland into payments facilitated by Trafigura employees through third parties.

The investigations were triggered, in part, by statements made by Mariano Marcondes Ferraz, a former Trafigura employee, as part of a plea agreement after his conviction in Brazil. Trafigura acknowledges the investigations and anticipates resolving the U.S. Department of Justice's inquiry into improper payments made in Brazil imminently. As a provision for potential penalties, Trafigura is expected to allocate USD 127 million, which will be disclosed in the company's 2023 Annual Report.

In Switzerland, the Office of the Attorney General (OAG) has taken legal action, requesting the Federal Criminal Court to consider charges against Trafigura Beheer B.V. (TBBV), the parent company, for failing to prevent alleged unlawful payments. These payments were reportedly routed through a third party to a former employee of Sonangol, the Angolan state energy company, during the period 2009-2011. Despite Trafigura's willingness to resolve the Swiss investigation, the OAG has opted to proceed to court. TBBV plans to defend itself, emphasizing the existence of compliance and anti-bribery controls during the relevant timeframe.

The OAG has also leveled charges against Mike Wainwright, Trafigura's former Chief Operating Officer, who has rejected the allegations and intends to mount a defense in court. The charges extend to a former Sonangol employee and a former consultant to DT Group, a joint venture with partial ownership by TBBV.

In Brazil, TBBV remains embroiled in an ongoing civil case related to the same matter. Trafigura Executive Chairman and Chief Executive Jeremy Weir expressed regret over the incidents, acknowledging their breach of the company's code of conduct. Weir highlighted Trafigura's substantial efforts over the years to foster a culture of responsible conduct, with notable enhancements to the compliance program and controls since the period under scrutiny.

Trafigura's compliance policies and procedures have undergone external reviews, meeting relevant legal requirements and international standards, according to Weir. The company's decision in 2019 to prohibit the use of third parties for business origination is cited as one of the measures taken to reinforce ethical practices within the organization. Weir concluded, "These historical incidents in no way represent the company we are today."

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