Trafigura’s $1.1 Billion Mongolia Fraud Was ‘Humbling,’ CEO Says

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Summary: Trafigura CEO addressed the firm’s $1.1 billion fraud loss in Mongolia, calling it a “humbling experience” and a catalyst for internal reform. The loss was caused by manipulation of financial records and concealment of overdue debts by Trafigura employees. The company missed red flags partly due to COVID-era isolation of its Mongolian office and a lack of language fluency. This scandal followed closely on the heels of a $577 million nickel fraud. Holtum emphasized the need for an internal culture where employees feel empowered to raise concerns, noting that better questioning could have revealed the scheme earlier. While he could not guarantee zero future fraud, he said new safeguards and upgraded controls have been introduced company-wide​.

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Source: Bloomberg