Landmark Bribery Case Convicts Trafigura and Executive

Switzerland's highest court has handed a 32-month jail sentence to former Trafigura COO Mike Wainwright and fined the company $148 million in a landmark bribery case, setting a precedent for corporate accountability.

In a groundbreaking ruling, Switzerland's highest court has convicted the well-known commodities trading firm Trafigura alongside its former chief operating officer Mike Wainwright for their involvement in bribery to access Angola's lucrative oil sector. Wainwright was sentenced to 32 months in prison, and the company was hit with a significant fine of $148 million (£119 million). This case is notable as it marks the first instance where an entire corporation has faced charges from Switzerland’s top court, which typically handles severe crimes like terrorism.

The bribery investigation depicted a complex web of decision-making that included offshore shell companies and substantial payments to intermediaries. The court heard that Trafigura paid an official associated with Angola's state oil company nearly $5 million between 2009 and 2011. Evidence, comprising internal documents and communication, suggested that while Trafigura publicly maintained strong anti-corruption policies, in practice, it established systems to circumvent these guidelines, notably through a middleman humorously dubbed "Mr Non-Compliant."

This ruling could have profound implications for commodity brokers around the globe, particularly those operating in Geneva, the home of Trafigura and other trading enterprises. Just the night before the verdict, an extraordinary coincidence occurred—a fire erupted at the Hotel des Bergues, a luxury establishment where, previously in 2008, an Angolan official had stayed, paid for by Trafigura.

Swiss federal authorities hope that this conviction underscores a transforming landscape in corporate governance, marking a strict end to old business practices in Switzerland’s commodities sector. Both Trafigura and Wainwright have expressed intentions to challenge the verdict; thus, Wainwright has not been taken into custody while awaiting the outcome of the appeal.