Trafigura used dozens of ‘high risk’ middlemen, court told in bribery case

The recent revelations in the Swiss federal criminal court paint a troubling picture of Trafigura's operations, underscoring the lengths to which the company has gone to secure profits in developing countries. The use of "high risk" intermediaries to smooth business deals, despite knowing the risks of bribery and corruption, speaks volumes about the company's priorities.

𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐭𝐫𝐢𝐚𝐥:

🌐 𝐖𝐢𝐝𝐞𝐬𝐩𝐫𝐞𝐚𝐝 𝐔𝐬𝐞 𝐨𝐟 𝐈𝐧𝐭𝐞𝐫𝐦𝐞𝐝𝐢𝐚𝐫𝐢𝐞𝐬: Trafigura employed around 50 intermediaries globally in 2010, many set up by former employees to unlock trading opportunities in politically troubled regions. These arrangements were knowingly "high risk" and facilitated questionable deals.

💰 𝐁𝐫𝐢𝐛𝐞𝐫𝐲 𝐀𝐥𝐥𝐞𝐠𝐚𝐭𝐢𝐨𝐧𝐬: The company is accused of paying over €5 million in bribes to an Angolan government official to secure lucrative contracts, resulting in more than $143.7 million in profits. The involvement of top executives, including former COO Mike Wainwright, highlights the depth of the corruption.

📉 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐚𝐛𝐥𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞: Despite claims of rigorous scrutiny, the company's compliance measures failed to prevent illegal payments. Payments to the intermediary in Angola, did not raise any "red flags," revealing a significant oversight.

Michael Firth, Deputy Head of Compliance, admitted that the tipping point in 2019 was due to mounting concerns over corruption outweighing commercial benefits. However, this shift came far too late, and the damage had already been done.

Trafigura's actions reflect a pattern of prioritizing profits over ethics and legality. The company's reliance on dubious intermediaries and the subsequent fallout from these practices underscore a deeply ingrained culture of malfeasance.

As the trial continues next week, it's clear that Trafigura's reputation is tarnished. The ongoing legal proceedings will further reveal the extent of the company's misconduct and its impact on the global commodity trading industry.

In Belgium, Trafigura is accused of being the mastermind behind the allegedly fraudulent restructuring of Nyrstar in 2019, resulting in Trafigura becoming the 100% owner of the operational assets of the second largest zinc smelter in the world. 

Go to original article - 'Financial Times'

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