Swiss trading house Trafigura is on a mission to recover $500 million in Mongolia following a year-long investigation into a billion-dollar fraud scheme involving its local fuel supply operations. This incident is the second major fraud case Trafigura has uncovered in two years, prompting concerns among bank trade financiers about the company’s oversight capabilities.
Trafigura announced it had made provisions of $1.1 billion after uncovering “misconduct” at its Mongolian unit, which included manipulation of data and concealment of overdue receivables. The firm’s main counterpart, Lex Oil, has acknowledged a debt of over half of this amount, but the remaining $500 million is still unaccounted for. Although Trafigura has not accused any parties of fraud yet, the investigation continues.