Geneva trader Gunvor convicted in connection with corruption in Ecuador Jordan resigns – this is how the parties respond

Geneva-based commodities trader Gunvor has been convicted by the Federal Public Prosecutor’s Office of criminal liability in connection with corruption crimes in Ecuador. Gunvor must pay 86.7 million francs, of which 4.3 million in fines.

The Federal Public Prosecution Service’s investigation found that Gunvor “did not take all necessary and reasonable organizational precautions” to prevent foreign officials from being bribed in his name between February 2013 and February 2017, the Federal Public Prosecution Service announced on Friday. The Geneva-based commodity trading company is therefore criminally responsible for bribing foreign officials.

Gunvor decided not to object to the criminal order, making it legally binding. According to the statement, the sentencing will take place as part of a procedure coordinated with US authorities.

7.5 million to Ecuadorian officials

According to federal prosecutors, about $7.5 million in bribes flowed over a four-year period to an Ecuadorian official who held a senior position at the state oil company Petroecuador. According to the Federal Public Prosecutor’s Office, these corrupt transactions provided direct benefits to the company. This was because the Ecuadorian oil company subsequently entered into oil trading contracts with two companies with which the Gunvor Group had entered into related contracts.

According to the statement, the bribes, part of which were processed through the Swiss financial center, were carried out with the involvement of a former employee of the Gunvor Group and two intermediaries operating through an offshore company. These three people have pleaded guilty in the United States of America, federal prosecutors wrote.

Insufficient measures from Gunvor

The Federal Public Prosecution Service said that Gunvor’s risk analysis, anti-corruption measures and processes and their effective implementation were obviously not sufficient to prevent existing opportunities for corrupt actions from being exploited.

Of the 86.7 million francs that the group now has to pay, 82.3 million is intended for a compensation claim. This corresponds to part of the profits that the company was able to generate thanks to the corrupt contracts.

The fine of 4.3 million took into account that the Gunvor Group “contributed to the progress of the investigation through its cooperation and – albeit belatedly – implemented certain measures that led to the termination of the business relationship with the two aforementioned intermediaries,” it said. (sda/awp)