Trafigura agrees to pay a $127 million fine stemming from the US bribery investigation in Brazil

Commodities company Trafigura reported Thursday that it had agreed to pay about $127 million as part of a deal Plea agreement After an investigation conducted by the Ministry of Justice United State Concerning bribes paid to officials Brazilians To secure oil contracts.

Trafigura Beheer BV, the parent company of the Trafigura Group during the period in question, agreed to pay a criminal fine of US$80.5 million and forfeit US$46.5 million after pleading guilty to the crime. Conspiracy to violate the Foreign Corrupt Practices Act (FCPA)According to statements by the company and the Ministry of Justice.

Trafigura said in December that it had set aside $127 million to cover a potential fine imposed by the Justice Department. Ending a long investigation into “improper payments” by the company in Brazil To secure business with the state oil company Petroleo Brasileiro SA (Petrobras).

Nicole M. said: “For more than a decade, Trafigura bribed Brazilian officials to illegally obtain business and generate profits exceeding $61 million,” said Argentieri, principal deputy attorney general and head of the Justice Department’s Criminal Division. “Today’s guilty plea underscores that when companies pay bribes and undermine the rule of law, they face significant penalties. “The Department remains committed to combating foreign bribery and holding accountable those who violate the law.”

A statement by the US Department of Justice indicated that, according to court documents, Between approximately 2003 and 2014, Trafigura and its co-conspirators paid bribes to Petrobras officials to obtain and retain business with the oil company. Beginning in 2009, Trafigura and its co-conspirators, who met in Miami to discuss the bribery scheme, agreed to pay bribe amounts of up to 20 cents per barrel of petroleum products purchased or sold to Petrobras by Trafigura and to conceal the bribe payments using… Ghost companiesPayments are routed through intermediaries who use bank accounts in tax havens to deliver cash to officials in Brazil. Thus, Trafigura benefited approximately $61 million from the corrupt scheme.

“These historical incidents do not reflect Trafigura’s values ​​or the behavior we expect from every employee,” Jeremy Weir, the company’s chairman and CEO, said in a statement, adding that he was “pleased that the Department of Justice is recognizing the actions.” Taken to invest in the compliance function.

“Trafigura's corrupt practices violated the Foreign Corrupt Practices Act, and today's decision demonstrates that such practices exist.” Strict penalties for any company that attempts to bribe public officialsThis was stated by Michael Nordwall, Deputy Director of the FBI's Criminal Investigation Division.

This decision is the latest in a series of large fines imposed by the US government on major global raw materials operators over corruption. Earlier this month, Gunvor agreed to pay $662 million to settle a similar investigation. Glencore, Freepoint Commodities and a subsidiary of Vitol have paid fines and reached similar settlements.

Traders who buy and sell goods often operate in jurisdictions where corruption is widespread, putting them at risk of violating the Foreign Corrupt Practices Act, which prohibits paying bribes to foreign officials.

“Our office will continue to pursue anyone who uses the Southern District of Florida to promote corrupt foreign practices and bribery schemes.”said U.S. Attorney Marcenzie Lapointe for the Southern District of Florida. “We will continue to work with our colleagues in the Criminal Division to identify and prosecute those responsible, including individuals and companies.”

(Information from Reuters)