Singapore-Based Trafigura Group Hit by Multiple Scandals
- Kris Vansanten
- Jan 6
- 2 min read
Updated: Apr 13
The post published by the well-known whistleblower Julie O'Connor confirms once again that Trafigura is under scrutiny by regulators in different regions of the world for corruption and misleading practices.
Despite this, ten (10!) Belgian leading corporate law firms defending Trafigura and its allies against the minority shareholders of Nyrstar for the allegedly fraudulent restructuring and acquisition of Nyrstar NV in 2015-2019, continue denying the daylight by using stalling tactics, obstruction and hiding of cricital information under the apparent abuse of core democratic rights like the 'right of defence', 'client-attorney privileged information', GDPR, and confidentiality obligations in an all too obvious attempt to prevent transparency and justice being done.
However, things are changing.
In the US Trafigura was charged by the CFTC and pleaded guilty for crimes not committed in the US. As a result, Trafigura Beheer (one of the top entities in the opaque organisation structure of Trafigura, located in The Netherlands) pleaded guilty on March 28 and agreed to pay more than US$126 million for violations of the US Foreign Corrupt Practices Act (FCPA), stemming from the company’s scheme to pay bribes to Brazilian government officials to secure business with Brazil’s state-owned oil company Petrobras, the US Justice Department announced.
Stephen M. Kohn, founding partner of Kohn, Kohn & Colapinto, stated:
“Holding a multinational company headquartered in Singapore accountable for misconduct which occurred in Mexico further demonstrates the transnational scope and impact of U.S. laws and whistleblower programs.”
Also in other jurisdictions Trafigura is sued by local bodies for crimes committed elsewhere.
Steve Vickers, CEO of Steve Vickers Associates, a regional political and corporate risk consultancy, said: "Singapore regulators should ramp up oversight and seek greater understanding from the commodity traders of their accounting and compliance mechanisms, including those in place in other jurisdictions. The regulators also need to make clear to businesses such as Trafigura that what happens elsewhere has repercussions in Singapore.”
As for the belgian Nyrstar case, November 28th will be important as pleadings will take place in Turnhout on the nomination of a provisional administrator for the remaining stock quoted shell company Nyrstar NV. After more than five years of overwhelming evidence of obstruction, misleading and market manipulation by Nyrstar's board, lawyers, advisors and auditors, time has come for the Court to show courage and ensure that justice is not only done in theory, but also is perceived to be done in practice.
As we have nothing to hide, we invite everyone to attend these pleadings and by doing so provide support for justice and the better protection of minority shareholder rights, of our companies, of our collective welfare and ultimately of the rule of law.
