Vitol's global corruption record under scrutiny

The international oil trader appointed by the Namibian government as the country's sole bulk petroleum supplier for July to September previously paid more than US$163 million (about N$2.9 billion) to resolve bribery investigations in the United States and pleaded guilty in New York over its involvement in the United Nations Oil-for-Food Programme in Iraq.Mines and energy minister Modestus Amutse last week announced that Vitol Bahrain E.C. had been selected as Namibia's sole supplier of bulk petroleum products from 1 July to 30 September.Amutse said the appointment formed part of a coordinated fuel procurement arrangement aimed at securing fuel supplies and reducing import costs.The decision followed recommendations from a technical team established to evaluate bids from local and international suppliers, the ministry stated.The minister said the arrangement was expected to save the country approximately N$1 billion over the three-month period.Under the arrangement, Vitol will import and supply fuel to participating oil marketing companies in Namibia.Documents seen by Namibian Sun show that the contract identifies six buyers, including Validus Energy, Nasan Energies and Vivo Energy.US-based accusationsAccording to the US Department of Justice, Vitol agreed in December 2020 to pay criminal penalties and related settlements exceeding US$163 million after investigations into bribery schemes involving officials in Brazil, Ecuador and Mexico.The justice department accused the company of using intermediaries and shell companies to facilitate corrupt payments linked to business with state-owned energy companies in the three countries.Court records in New York further show that Vitol SA pleaded guilty in 2007 to first-degree grand larceny in connection with illegal surcharges paid under the United Nations Oil-for-Food Programme.The company agreed to pay US$17.5 million to resolve the matter.The Oil-for-Food Programme was established by the United Nations to allow Iraq to sell oil in exchange for humanitarian supplies during international sanctions imposed on Saddam Hussein's government. Subsequent investigations uncovered widespread abuse of the programme by companies that paid kickbacks and surcharges to secure contracts.According to media reports, Vitol's legal troubles resurfaced in February 2024 when former trader Javier Aguilar was convicted by a federal jury in Brooklyn on foreign bribery and money-laundering charges linked to schemes involving Ecuador and Mexico.Prosecutors alleged that more than US$1 million in bribes were paid to secure business for Vitol.Minister respondsAsked about Vitol's international record, Amutse dismissed concerns.“In terms of Vitol's engagements and what happened in other countries, we are not going to engage ourselves in that and get involved in other countries' domestic affairs,” Amutse said.Amutse confirmed he had seen documents detailing the company’s legal history.“I have seen the document, but as a ministry and the government at large we are not privy to that information and what it aims to achieve. I have no mandate to comment on that. I believe that a lot of its elements need to be directed to responsible offices, departments and not to me,” he said.“I will confine myself to the affairs, responsibilities and the mandate of the ministry only. We have just executed what the technical team recommended. What I can tell you is that the appointment of Vitol is the position of the government and it is the best one,” Amutse added.The minister declined to identify members of the technical team.Previously barredThe appointment has also drawn attention because the Namibia Competition Commission earlier this year found that Vitol already controlled an estimated 75% to 85% of Namibia's intra-wholesale fuel market.In an April ruling involving Nasan Energies, the commission barred the company from sourcing fuel from Vitol for five years, citing concerns over market concentration and competition. The decision was subsequently appealed.Namibian Sun reported this week that Vitol's own supply agreement identifies six buyers, including Validus Energy, which is 70% owned by Vitol Holdings, and Vivo Energy, which is wholly owned by Vitol.The same contract also lists Nasan Energies among the buyers.Miguel Hamutenya, a co-founder of Nasan Energies, had not responded to questions sent by Namibian Sun at the time of publication.Miguel is not only the co-founder of Nasan Energies but also serves as an executive within Validus Energy, placing him within two companies that appear among the buyers listed in Vitol's supply agreement. He also chairs the Namibia Youth Energy Forum.Namcor spokesperson Utaara Hoveka said the emergency fuel procurement decision was reached after consultations involving industry players, including Namcor.“It is important to note that the emergency fuel purchase decision is a product of consultation with industry, including Namcor, following invitations to local and international fuel suppliers.“As a matter of principle and in terms of our commercial agreements, we generally do not comment on commercial arrangements with partners and suppliers, on account of commercial sensitivities around them. Against that background, I am not at liberty to confirm or deny the terms of any current or future commercial arrangements,” Hoveka said.

Vitol's global corruption record under scrutiny

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Namibian Sun 2026-06-02

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Vitol's global corruption record under scrutiny

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Namibian Sun 2026-06-02

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