Switzerland's top criminal court made history on February 2, 2025, by convicting commodities giant Trafigura for bribery linked to lucrative oil contracts in Angola, marking the first time such action has been taken against a multinational company.
The ruling unfolded during the proceedings held at the federal court located in Bellinzona, where judges imposed a fine of 3 million Swiss francs (approximately $3.3 million) on Trafigura. This penalty was part of the court's response to bribery payments totaling nearly $5 million made to foreign public officials, with the additional stipulation for the company to set aside $145 million for potential compensation claims.
Judges determined Trafigura had derived profits of approximately $144 million from the oil contracts secured due to the corrupt practices. A spokesperson for Trafigura expressed the company's disappointment with the verdict, stating they were "reviewing the matter," but did not clarify whether they would pursue an appeal.
With its headquarters based in Singapore, Trafigura operates globally across sectors including oil and petroleum, metals and mining, natural gas, and power, employing more than 12,000 individuals. The court's ruling also included convictions for three other individuals involved: a high-ranking former employee of Trafigura, an ex-official from Angola’s state oil company Sonangol, and another intermediary, each contributing to the scheme.
The rulings did not come lightly; one defendant received the harshest sentence of 14 months, showcasing the legal system's serious stance against transnational corruption. The verdict can still be appealed, maintaining the defendants' presumption of innocence until final resolution.
During the trial, prosecutors contended the alleged offenses happened between 2009 and 2011 when Trafigura's then-parent company allegedly failed to exercise “reasonable and necessary” measures to prohibit bribery to the former Sonangol employee. The court's findings underscored these organizational failings, as Judge Stephan Zenger pointed out the expectation for Trafigura, as a significant player, to more vigilantly monitor such intermediary payments.
Wainwright, who once served as Trafigura’s Chief Operating Officer, was handed down the sentence of 32 months, with 12 to be served. His lawyer noted the intention to appeal, insisting on his client’s innocence and asserting the verdict lacked sufficient grounding. “Today’s verdict lacks grounding. The court found Mr. Wainwright guilty based on general assumptions and disregarded key evidence showing he was not involved,” said attorney Daniel Kinzer.
Prosecutors argued Trafigura had engaged intermediaries to facilitate bribery payments to secure contracts. Evidence presented during the trial included detailed documents, communications, and testimonies, some involving an ex-employee nicknamed “Mr. Non-Compliant” due to his dubious dealings.
This landmark conviction reflects not only Trafigura's direct culpability but also signals the commitment of Swiss authorities to combat foreign bribery effectively. The Office of the Attorney General of Switzerland issued statements affirming the trial's importance and its significance as part of broader anti-corruption efforts, especially within the commodities trading sector.
The ruling appears to set precedence, emphasizing accountability and stringent measures against illegal practices. Advocacy group Public Eye welcomed the verdict, noting its historical significance as it sends conflicting messages of warnings to the entire commodities industry.
Trafigura’s legal troubles are compounded by previous corruption allegations, including its recent $127 million settlement over separate allegations of bribery within Brazil. Being home to approximately 900 commodities trading firms, Switzerland is vastly significant for international markets, making such judicial actions pivotal for the sector.
Despite its high-profile conviction, Trafigura remains financially formidable, as indicated by their nearly $3 billion net profit reported during their latest fiscal year concluding September 30, 2024. The firm's response to this decision will be particularly important, not only for their corporate image but for the broader ramifications within the trading industry.
Consequently, this case raises pertinent questions about the commodity trading sector’s ethical practices and serves as both cautionary and transformative for firms globally, stressing the necessity of compliance as integral to business strategy.
With appeals likely on the horizon, the outcome of this verdict could influence policy discussions and operational standards beyond Switzerland, as global scrutiny intensifies over corporate compliance with anti-bribery laws.