GENEVA — Switzerland’s highest criminal court made a landmark decision on Friday by convicting Trafigura, a global commodities trading company, for its involvement in bribery related to highly profitable oil contracts in Angola.
Situated in the southern city of Bellinzona, the federal court imposed a fine of 3 million Swiss francs (approximately $3.3 million) against Trafigura concerning nearly $5 million in payments made to a foreign public official. Although the court could have imposed a maximum penalty of $5 million, it chose not to, acknowledging that Trafigura had established compliance measures over a decade prior to these incidents.
Additionally, the court has mandated Trafigura to reserve $145 million for potential compensation claims, as prosecutors highlighted that the company profited close to $144 million from contracts obtained through these illicit dealings.
In response to the ruling, a representative for Trafigura expressed disappointment and mentioned the company is currently evaluating the verdict, although they did not confirm whether they would appeal the decision.
Trafigura, headquartered in Singapore, ranks among the leading commodities trading organizations globally. The company is involved in various sectors including oil and petroleum, mining and metals, as well as gas and power, employing over 12,000 individuals worldwide.
The court also issued convictions for three individuals connected to the case: a former senior employee at Trafigura, a past official from the Angolan state oil firm Sonangol, and another ex-employee from Trafigura who acted as a middleman. One of the convicted individuals received a prison sentence of 14 months, the most severe punishment handed down.
It is important to note that this verdict is not yet final, and the individuals convicted retain the right to appeal. They continue to enjoy a presumption of innocence until a final verdict is reached.
During the trial, which began in December, prosecutors contended that Trafigura’s previous parent company failed to implement adequate measures to prevent illegal payments to the former Sonangol employee. The spokesperson for Trafigura emphasized that the company has dedicated substantial resources to enhance its compliance initiatives over the years, which includes mandatory training for all employees, bolstering controls, and a firm decision to eliminate the use of third-party agents for sourcing business opportunities.
