Ex-Trafigura Executive Sentenced in Historic Bribery Case

In a groundbreaking legal decision, ex-Trafigura COO Mike Wainwright receives jail time and the company is fined amid bribery scandal linked to Angola's oil market.

In a significant ruling, Switzerland's highest court has convicted the commodities trading firm Trafigura and its former chief operating officer, Mike Wainwright, of bribery related to efforts to secure access to the lucrative Angolan oil market. Wainwright, a former racing driver, was sentenced to 32 months in prison, while Trafigura faces a staggering $148 million (£119 million) fine. This conviction marks a notable first for Switzerland, as it is the first instance that a complete company has been charged; meanwhile, successful convictions of corporate executives are exceedingly rare.

Wainwright and Trafigura plan to appeal the ruling, allowing Wainwright to remain free during the process. The investigation uncovered a web of financial maneuvers involving immense sums of money, dubious intermediaries, and a network of offshore entities, such as those based in the Virgin Islands. Evidence presented in court revealed that between 2009 and 2011, Trafigura orchestrated a complex payment scheme that channeled nearly $5 million (£4.02 million; €4.81 million) to a senior official with Angola's state oil company. The court proceedings showcased documents, including emails and memos, that indicated the payments were sanctioned on Trafigura's official letterhead.

Despite claiming a comprehensive and effective compliance system, the overwhelming evidence portrayed a contrasting reality, illustrating a sophisticated setup designed to bypass anti-corruption protocols. An unnamed middleman, referred to as "Mr. Non-Compliant," was identified as a key figure in the illicit operations. This ruling is anticipated to have far-reaching implications for commodity brokers worldwide, especially those based in Geneva, where Trafigura and similar firms are located.

In a coincidental turn of events, a fire erupted at the five-star Hotel des Bergues the night before the verdict, where court documents indicated that an Angolan official had previously stayed as a guest of Trafigura in 2008. Swiss federal prosecutors aim for this case to symbolize a shift away from archaic business practices, as they pursued the serious charges in the country's highest court, typically reserved for severe criminal offenses. While Trafigura now faces a substantial fine, Wainwright awaits further developments regarding his appeal, having been ordered to serve at least one year of his sentence before any potential release.