How a Brazen Plot to Rig Oil Auctions Cost Venezuela Billions
- Editor
- Apr 21, 2023
- 1 min read
Summary: This investigative deep dive reveals how Venezuela’s state oil company, PDVSA, lost billions through a long-running bid-rigging scheme involving global commodity giants including Trafigura, Glencore, and Vitol. Central to the scandal was Francisco Morillo, a fixer who provided inside information to traders via a consulting firm, Helsinge. These traders used confidential auction data to undercut competitors by narrow margins, winning valuable oil contracts while kickbacks flowed to PDVSA officials. The scheme came to light after Morillo’s ex-wife handed over a laptop filled with incriminating evidence to investigators. US attorney David Boies launched a $10 billion lawsuit, but the case collapsed amid political chaos in Venezuela, sanctions, and questions over the legitimacy of the litigation trust. Despite the legal failure, evidence showed how widespread and systemic the corruption was, implicating top Trafigura figures and raising ongoing concerns about unpunished corporate misconduct.
Source: Bloomberg
