In brief
In a groundbreaking ruling, Trafigura's ex-boss gets jail time and the company faces hefty fines, signaling a shift in how corruption is tackled.
In a trailblazing case, Switzerland's top court has found Trafigura, a major commodities trader, and its former COO Mike Wainwright guilty of bribery linked to Angola's thriving oil sector. The court sentenced Wainwright, who has a background in auto racing, to 32 months in prison and slapped Trafigura with a massive fine of $148 million (£119 million). This is unprecedented as it's the first time a whole company has faced charges from Switzerland's highest court, highlighting the rarity of senior executive convictions for corruption.Wainwright and Trafigura plan to appeal the decision, meaning he won’t go to jail just yet. The case has all the twists and turns of a financial thriller with money, secretive intermediaries, and a web of shell companies based in offshore locations like the Virgin Islands. The court revealed evidence of substantial payments made to an Angolan oil company official totaling nearly $5 million (£4.02 million; €4.81 million) between 2009 and 2011. This strategy seemingly led to Trafigura securing contracts worth around $144 million (£115.93 million; €138.56 million) from Angola in later years.Despite denying any wrongdoing, Trafigura's legal team had a tough time against the overwhelming evidence presented, which contradicted their claims of solid anti-corruption measures. The complexity of their operations involved a mysterious figure referred to as "Mr Non-Compliant" from a nondescript office in Geneva. This verdict sends ripples through commodity trading, especially unsettling brokerages in Geneva where Trafigura operates alongside peers. In a surreal turn of events, a fire erupted at Hotel des Bergues just before the ruling—where records indicated an Angolan official stayed courtesy of Trafigura in 2008. Swiss prosecutors are optimistic this case will mark a turning point, indicating an end to corrupt business practices in the sector. With the impending financial penalties and Wainwright's sentence looming, Trafigura's future remains uncertain as they prepare for their appeal.
