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    Trafigura, Vitol barred from Mexico: press

Summary

The Mexican government is reviewing allegations of corruption among commodity trading houses.

by: Daniel Graeber

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Corporate governance, Contracts and tenders, Companies, Europe, Vitol, Political, Ministries, Regulation, News By Country, Mexico

Trafigura, Vitol barred from Mexico: press

The Mexican government is barring commodity traders Vitol and Trafigura from doing business in the country because of corrupt practices, its energy minister Rocio Nahle told Bloomberg news August 19.

Nahle said corruption had no place in the Mexican economy.

“Those who are carrying out corruption shouldn’t be in Mexico,” she was quoted by Bloomberg as saying. “We are working to leave a country with good practices.”

Vitol and Trafigura, two of the world’s biggest commodity traders, are under investigation for corruption and bribery in several jurisdictions across North America. A spokesperson for Trafigura countered the allegations, saying it was working in coordination with the highest standards outlined in various national laws.

Vitol had no comment for Bloomberg, though, like Trafigura, has insisted in the past that it is committed to the rule of law.

Nahle said nevertheless that neither company would secure new work from state energy company Pemex until at least the end of 2024 while the government holds a broad-based review of the practices of other commodity traders.

Mexican president Andres Manuel Lopez Obrador, known commonly as AMLO, vowed to crackdown on corruption when he came to power in 2018. Pemex has put forward a sovereign stance over the energy sector under AMLO, who is working to reduce the country’s dependence on private energy companies.

US-based Talos Energy said in July it was "very disappointed" to find the government awarded control over the Zama oilfield to Pemex.