Trafigura investigated for alleged corruption
Global commodities trader Trafigura is under investigation
by US authorities for alleged corruption and market manipulation relating to
oil trading, the Guardian has learned.
The Commodities and Futures Trading Commission (CFTC) is
leading a far-reaching probe into the activities of the oil and metals trading
house, including its operations in South America.
The Washington-based financial markets regulator has issued
subpoenas to a large pool of people, ordering them to hand over all information
they hold relating to the company’s activities.
The subpoenas demand information going back at least four
years relating to “manipulation and corruption involving oil products and
trading”.
Recipients of the subpoena have been set a strict deadline
to hand over documents and data to the CFTC, the Guardian understands.
The investigation is understood to relate to Trafigura’s oil
trading division, which is based in Singapore but also has offices in London
and Geneva.
The unit’s traders negotiate with other companies and
state-backed entities to buy and sell large quantities of oil and petroleum
products in resource-rich regions such as South America and Africa.
The US probe comes nearly 18 months after the Guardian
revealed that Trafigura had been named in Brazil’s vast “Car Wash” corruption
probe, alongside rival commodities traders Glencore and Vitol. It is unclear
whether the CFTC’s investigation is related.
The firm’s involvement emerged after campaign group Global
Witness unearthed documents relating to Brazilian prosecutors’ pursuit of
members of a group of businessmen called Brasil Trade.
The papers alleged links between Trafigura and Brasil Trade
member Jorge Luz, who became known as the Deacon of Bribes in Brazil and was
sentenced in October 2017 to 13 years and eight months for his part in
orchestrating bribes worth $20m (£15.8m).
According to the documents, Luz discussed “a proposal from
Trafigura” with state oil firm Petrobras, under which the trading firm would
lend Petrobras money in exchange for discounted oil.
Petrobras executives rejected the plan according to the same
document.
Trafigura told Global Witness in 2018 that the proposal did
not result in any agreement and that Luz was not retained to lobby for them.
Rival commodities trading firm Glencore, which was also
named in connection with the Car Wash probe, last year became the focus of a
CFTC investigation into alleged corrupt practices.
In a statement issued when it disclosed the CFTC’s
investigation, Glencore said it “understands that the CFTC’s investigations are
at an early stage and have a similar scope in terms of subject matter as the
current ongoing investigation by the US Department of Justice”.
It added that it would cooperate with the CFTC.
The CFTC and the Department of Justice both declined to say
whether they were investigating Trafigura.
Trafigura also declined to comment.
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