Trafigura is currently facing a corruption trial in Switzerland, which is a significant development for the commodity trading sector.
This is the first time a commodity trading company has faced corruption charges in Switzerland, and it is also the first instance globally where a top executive from such a firm has been directly accused of criminal wrongdoing. The trial began on Monday, with Trafigura Beheer BV, its former parent company, and Chief Operating Officer Michael Wainwright facing serious allegations of bribery.
The prosecution's case relies on the testimony of Mariano Marcondes Ferraz, a former top executive at Trafigura who was convicted in Brazil in 2018 for bribing executives at Petrobras. Prosecutors allege that between 2009 and 2011, Ferraz, along with Wainwright and Trafigura, paid over €5 million to an Angolan official to secure oil shipment rights.
On Tuesday, Trafigura's legal team faced a setback when a Swiss panel of judges rejected their attempt to exclude Ferraz's testimony from the trial. The defense argued that Ferraz's evidence was inadmissible due to a secret plea bargain struck with Brazilian authorities. Despite these arguments, the presiding judge ruled that the trial would proceed as scheduled, and the credibility of Ferraz's statements would be evaluated on their merits. The judges also dismissed claims that the testimony could not be used due to the death of Trafigura's founder, Claude Dauphin, in 2015.
While the judges allowed Ferraz's testimony to stand, they acknowledged that there was a valid argument regarding the time-barring of certain accusations. Under Swiss law, serious bribery charges are subject to a 15-year statute of limitations, which could impact the prosecution's case. The judges indicated that this matter would need to be addressed in their final ruling.
As the trial continues, it is expected to set important precedents for the commodity trading industry and corporate accountability. The outcome could have far-reaching implications, not only for Trafigura but also for other firms in the sector, as it highlights the increasing scrutiny of corporate practices and the legal consequences of alleged corruption.