Overview
Senior executives at Mercuria, a Geneva-based global commodities trading firm, are under investigation by the Federal Investigation Agency (FIA) of Pakistan. They potentially face charges including fraud, cheating, and criminal breach of trust. The inquiry may expand to international levels, involving Interpol, and impacting the company’s global operations.
Key Figures Involved
The FIA’s notice includes prominent figures such as:
- Marco Dunand, CEO of Mercuria
- Laoye Abiola
- Guillaume Vermerch
- Gareth Bradley
- Consultant Faysal Khan
Origins of the Investigation
This investigation stems from Mercuria’s dealings with Eleven Consultancy, a UAE-based commodities trading company, concerning upstream and downstream contracts in Congo Brazzaville. Reports indicate that Mercuria may have engaged in secretive transactions bypassing Eleven Consultancy, their initial business introducer.
Implications and Corruption Allegations
The implications of these actions are extensive, potentially unveiling a larger scheme of corruption within the trading of Congolese oil. A 2019 report by Global Witness previously highlighted nearly $20 million in allegedly stolen state funds funneled by Claudia Sassou-Nguesso into luxury real estate in New York.
Political Implications
Further complications arose from a 2017 document shared by Laoye Abiola, implicating key political figures in Congo Brazzaville, including the president’s son and businessman Lucian Ebata. Despite this, business engagements continued.
Scope of the FIA’s Inquiry
The FIA’s inquiry will also assess potential anomalies in contract terms with Congolese companies and may refer findings to international investigative bodies. Questions loom over the legitimacy of oil trading practices, particularly the manipulation of pricing periods and nominations, which might have allowed undue advantages to oil traders at the expense of Congo Brazzaville’s government.
Requested Documents
FIA has sought documents from Mercuria including:
- Details of the contract with M/S Eleven Consultancy FZE.
- Details of the contract with M/S Orion Oil Ltd and M/S SNPC from 2018 to date.
- Details of all transactions concluded in trading and upstream business in Congo Brazzaville from 2018 to date with M/S Orion Oil Ltd. and SNPC.
- Details of all cargos in Congo Brazzaville along with profit/loss statements. Which pricing period was nominated in pricing the cargos and what was the method of nomination?
- All correspondence internal and external regarding marine XI with authorities in Congo Brazzaville, SNPC, and the Ministry of Hydrocarbons.
Conflict of Interest Concerns
In the wake of these allegations, Mercuria appointed Landry Gantsui, a relative of Congolese President Denis Sassou Nguesso, as CEO of Mercuria E&P Congo. This raises concerns about a conflict of interest.
Conclusion
The ongoing investigation by Pakistan’s FIA could have significant repercussions for Mercuria, potentially impacting their global operations and uncovering broader corruption within the commodities trading sector.
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