Despite recent signs of improvement in Papua New Guinea’s (PNG) fuel crisis, the news of bribery charges against Trafigura, owner of the country’s sole fuel supplier Puma Energy, further complicates the ongoing standoff between the Central Bank and Puma Energy.
Trafigura’s troubles stem from a Miami court admission that its founder and former CEO, Claude Dauphin, authorized bribe payments between 2003 and 2014 to secure oil contracts with Brazil’s state oil company Petrobras. The estimated total amount of bribes paid is a staggering US$19.7 million.
These revelations raise serious concerns about Trafigura’s business practices and cast a shadow over the ethical conduct of its PNG subsidiary, Puma Energy.
This comes at a particularly sensitive time, as PNG just emerged from a critical fuel shortage that caused significant price spikes for gasoline and diesel. The crisis inflicted hardship on many Papua New Guineans and strained the nation’s economy.
Many suspect the standoff between the PNG Central Bank and Puma Energy may have contributed to the crisis. This standoff could potentially be linked to concerns about Puma Energy’s (and by extension, Trafigura’s) business practices. The PNG government is reportedly considering diversifying fuel suppliers to reduce reliance on Puma Energy.
The investigation into Trafigura’s alleged bribery could have implications for Puma Energy’s operations in PNG. The PNG government’s response will be closely watched, with potential actions ranging from increased scrutiny of Puma Energy’s practices to a complete shift towards alternative fuel suppliers.
In essence, the bribery allegations against Trafigura raise questions about the ethical conduct of its subsidiary, Puma Energy, which directly impacts PNG’s fuel supply and the recent fuel crisis.
