Swiss authorities have begun the trial of oil and commodities giant Trafigura Group and three other defendants, who face charges related to bribery. The case, which opened on Monday in Switzerland’s top criminal court, centers on allegations that Trafigura failed to prevent over $5 million in bribes paid to an Angolan oil official. In return, the official provided oil and shipping contracts more than a decade ago.
Trafigura has denied wrongdoing, stating that its former parent company, Trafigura Beheer BV (TBBV), will defend itself in court. The company claims that TBBV’s anti-bribery and anti-corruption measures, in place at the time, met legal requirements and international standards. Trafigura added that it has since strengthened its compliance program.
This legal issue comes amid reports of further financial troubles for Trafigura. Last month, Bloomberg revealed that the company may face losses of up to $1.1 billion in Mongolia. These losses are partly linked to suspected fraud by Trafigura employees, who allegedly manipulated payments and hid large amounts of unpaid debt. Despite the scale of the loss, bankers have noted that it is surprising given Mongolia’s modest oil consumption—about 35,000 barrels per day, valued at roughly $1 billion annually.
Jean-Francois Lambert, a former commodity banker and consultant, commented on the case, emphasizing that the key to addressing such issues is learning from mistakes and improving company governance. “It’s not just about reshuffling staff or launching a lengthy recovery process,” he said, “but about strengthening internal controls and processes.”
Trafigura, one of the world’s largest commodity traders, reported impressive figures for 2023. The company traded an average of 5.5 million barrels of oil per day, equaling the combined demand of the UK, France, and Germany. Additionally, Trafigura sold more than 100 million tonnes of metals and bulk commodities, including coal. Its full-year revenue for FY 2023 reached $244 billion, surpassing that of BP Plc.
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