Raja Furqan Ahmed,
Despite second notice in ongoing criminal investigation in Pakistan,
Mercuria Energy group, CEO Marco Dunand, Laoye Abiola, Guillaume Vermerch, Gareth Bradley and Faysal Khan are accused of fraud,
cheating, forgery and embezzlement and second notice was issued to appear in Federal Investigation Authority office 26-08-2024.
It is alleged in the notice that prima Facie from the content of the complaint, Mercuria energy group was involved in the omission and commission of offences under section 406, 420, 417 of Pakistan Penal Code, 1860 which leads to the commission of offence under section 3 of Anti Money Laundering Act, 2010 (“AMLA, 2010).
FIA can investigate all predicate offences enumerated in Schedule of AMLA, 2010 [preventing debt being available for creditors (Section 422 of PPC), Cheating (Section 417 of PPC) & criminal breach of trust (Section 406 of PPC)] whether those are committed within Pakistan or outside Pakistan [foreign serious offences under Section 2(i)]. The retention of proceeds of such crimes constitutes the offence of money laundering, which again, could be investigated by FIA.
Both Pakistan and Switzerland are signatories to United Nations Convention against Transnational Organized Crime, having ratified the same in 2010 and 2006 respectively. AMLA, 2010 was promulgated to effectuate the provisions of the said convention and hence, it includes the power to investigate foreign serious offence.
Following documents are sought by FIA; Details of contract with M/S Eleven Consultancy FZE, Details of the contracts with M/S Orion Oil Ltd and M/S SNPC from 2018 till date, Details of all transaction concluded in trading and upstream of business in Congo Brazzaville from 2018 till 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, Details of “look back pricing option” of the agreements, All Correspondence internal and external regarding Marine XI with authorities in Congo Brazzaville with SNPC and Ministry of Hydrocarbons.
Sources close to the investigation state that there could be a possibility that Mercuria was seeking a favorable pricing option from Eleven not only in 2018 but also in 2014. It is pertinent to mention any pricing period other than the Bill of Lading must be nominated before 6-15 days before any of the pricing option comes into play as per contract. It is Illegal to let all pricing periods pass by and then nominate a pricing option, generally known as look back option. This is like being able to bet on a match after the match result has come out. “Can never lose.” This can cause colossal loss to the Congo Brazzaville Exchequer.
If there is such evidence that Mercuria has asked for a favorable pricing option in 2014 cargo or 2018 and Eleven failed to deliver to such demands, then it can explain easily why Mercuria terminated Eleven contract. The fact that Mercuria could ask for such illicit options can shed light to how, this world leader in commodities operate in Africa and other poorest nations of the world.
Mercuria often known boost that it is unlike the other large commodities houses which from time to time have been alleged of corruption and corrupt practices, but this may well lift the veil and instigate a US state department enquiry into their affairs in Africa.
This could be the reason that Mercuria is not giving the documents to FIA and trying to hide behind jurisdiction challenge as it can open a whole new pandora box of investigations against Mercuria and decision makers of SNPC since its inception.
It seems like FIA is relentless to investigate further and may register cases against Mercuria Energy Group management. Now that AMLA is in play, such documents can be sought from Swiss Authorities and Mercuria office can be raided in Geneva. It’s a developing story.