Trafigura Charged for Alleged Bribery Scheme in Angola

 

Swiss commodity trading giant Trafigura has been charged with failing to prevent a $5 million bribery scheme in its chartering and oil trading operations in Angola, the latest public corruption case involving the commodity-trading industry in the developing world. It is the first such case in Switzerland to result in charges against a top executive - Mike Wainwright, the firm's former CEO, who retired earlier this year. 

According to Swiss prosecutors, Trafigura paid off an Angolan oil official, Paulo Gouveia Junior, in exchange for his signature on eight ship charter contracts and one bunkering contract in 2009-10. These allegedly corrupt agreements netted Trafigura $144 million in profits. 

Over the course of 2009-11, prosecutors said, Trafigura paid $4.3 million into a shell company in the Virgin Islands and designated Gouveia as the beneficiary of the fund. Gouveia also allegedly received an additional cash bribe of $600,000 delivered in Angola. The transactions were highly structured and were routed through an intermediary - a consultant who previously worked for Trafigura and whose sole client was Trafigura. This fixer was given the nickname "Mr. Non-Compliant" by Trafigura founder Claude Dauphin, prosecutors asserted.

Wainwright was personally involved, according to the indictment, and allegedly signed some of the documents for these transactions. He has maintained his innocence, and his legal counsel told the FT that he will be mounting a robust defense. 

Trafigura is also a defendant in the case. If convicted, the company would have to forfeit its earnings from the alleged scheme, totaling about $150 million - equal to about two percent of its total profit in 2023. 

The trading company is a pivotal player in Angola's development plans, with a leading role in the deepwater Port of Lobito.