Trafigura Expects to Take $1.1-Billion Hit From Misconduct in Mongolia Business

Trafigura, a multinational commodity trading giant, has announced that it expects to take a $1.1 billion hit to its earnings as a result of misconduct by a former employee in its Mongolia business.

The company said in a statement that the misconduct involved "unauthorised trading activities" by the employee, which led to "significant financial losses."

The company said it had launched an internal investigation into the matter and had reported it to the relevant authorities.

Trafigura said it had taken steps to strengthen its internal controls and compliance procedures to prevent similar incidents from happening in the future.

The company said it was "committed to the highest standards of ethical conduct and compliance" and that it would "continue to cooperate fully with the authorities in their investigations."

The news of Trafigura's misconduct comes at a time when the company is facing increasing scrutiny from regulators and law enforcement agencies around the world.

In recent years, Trafigura has been investigated by authorities in the United States, the United Kingdom, and Switzerland for alleged bribery, corruption, and money laundering.

The company has denied any wrongdoing, but the investigations have raised concerns about its business practices.

The misconduct in Mongolia is the latest in a series of setbacks for Trafigura.

In 2020, the company was fined $579 million by the U.S. Department of Justice for its role in a bribery scheme in Brazil.

The company has also been accused of environmental pollution in several countries, including Peru and Ivory Coast.

The misconduct in Mongolia is likely to further damage Trafigura's reputation and could lead to additional regulatory scrutiny and enforcement actions.

The company's shares have fallen by more than 20% since the news of the misconduct was announced.