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Extractive Industries/Mining/Oil & Gas
Geneva, Switzerland
Nationality of Foreign Officials: Ivory Coast, Republic of the Congo (Brazzaville)
Summary of Allegations:
A former employee of the Swiss commodities trader Gunvor Group allegedly perpetrated acts of bribery of foreign officials in the Republic of the Congo and Ivory Coast. Additional allegations include fraud, embezzlement and money laundering relating to an oil contract in the Republic of the Congo.
Approximate Alleged Payments to Foreign Officials: Loan in exchange for oil.
Business Advantage Allegedly Obtained:
Agencies: Switzerland: Office of the Attorney General
Results: Criminal Fine, Disgorgement, Plea Agreement, Prosecution of Individuals
Year Resolved: 2019
Compliance Monitor:
Ongoing: No
Details:
The Swiss Attorney General has been investigating a suspected money-laundering operation involving a Gunvor trader since 2011. Gunvor has dissociated itself from at least two employees allegedly connected to the matter, filing a criminal complaint against one in late 2012, leading to charges of fraud, embezzlement and money laundering, and dismissing another in 2014 and reporting him to Swiss authorities.
In 2017 the Attorney General broadened its investigation to include "possible organizational shortcomings" within Gunvor Group itself, including its Swiss entity, Gunvor SA, and the Geneva branch of the Netherlands-registered Gunvor International BV. Investigators are examining how those shortcomings may have been "exploited by the ex-employee to perpetrate alleged acts of bribery of foreign officials”. Gunvor has stated that it is fully cooperating with the Attorney General's investigation.
On 15 August 2018, Gunvor Group’s formal employee Pascal Callard agreed to enter a plea bargain with Swiss prosecutors. He admitted that he had bribed officials in the Congo Republic and Ivory Coast for oil deals and agreed to testify against others.
On 28 August 2018, a Swiss court accepted Pascal Callard’s plea bargain. Callard admitted to bribing officers in these two countries to obtain oil deals.
On 30 August 2018, Pascal Callard received an 18-month suspended sentence.
On 17 October 2019, it was reported that the Office of the Attorney General of Switzerland convicted Gunvor and ordered the company to pay USD 105 million, including a fine of USD 4.4 million.