In brief
In a historic ruling, Mike Wainwright, former COO of Trafigura, was convicted of bribery, marking the first instance of a company being charged by Switzerland's highest court. The court's decision follows evidence of a complex bribery scheme involving payments to Angolan officials, with Trafigura now facing a hefty fine and plans to appeal the verdict.
Switzerland's highest court has made a groundbreaking ruling, convicting Trafigura, a prominent commodities trading firm, and its former chief operating officer Mike Wainwright of bribery related to dealings in Angola's oil sector. Wainwright received a 32-month prison sentence, while the company was slapped with a substantial fine of $148 million (£119 million). This landmark case marks the first time an entire corporation has faced charges in Switzerland on such grounds, and it highlights the rarity of senior executives being held accountable for corruption.Wainwright, who also has a background in racing, has announced plans to appeal the conviction, temporarily delaying his incarceration. The case unveiled a narrative akin to a financial thriller, showcasing millions in illicit payments made through a convoluted network of intermediary firms and offshore entities. Between 2009 and 2011, Trafigura facilitated nearly $5 million in payments to an official from Angola's state oil company, a strategy which led to lucrative contracts valued at approximately $144 million (£115.93 million; €138.56 million).Although Trafigura's legal team expressed optimism prior to the ruling, the evidence presented, which included a trove of records such as emails and official documents, painted a stark picture of systemic corruption that contradicted the company's claims of robust compliance measures. An individual known as "Mr Non-Compliant," who operated from a Geneva office, was reportedly central to the web of fraudulent activities.The repercussions of this ruling are expected to resonate throughout the commodity trading industry, particularly in Geneva, where Trafigura and other similar enterprises are based. Interestingly, just before the verdict was announced, a fire broke out at the luxury Hotel des Bergues - a location previously associated with an Angolan official who benefitted from Trafigura's hospitality in 2008. Swiss federal prosecutors are hopeful that this significant case signals a departure from outdated business practices, having escalated the charges to Switzerland's apex court reserved for severe offenses. Trafigura now faces both a hefty financial penalty and a legal battle as Wainwright awaits the outcome of his anticipated appeal.
