In its verdict, the court stated that “Steinmetz’ collaboration was instrumental in the corruption scheme.” Having disproved the defence’s argument that Beny Steinmetz had played no role in the affair, the court has sentenced him to 5 years in prison and a confiscation amount of 50 million Swiss francs for having arranged the transfer of almost USD 10 million worth of bribes to Mamadie Touré, the fourth wife of the late Guinean President Lansana Conté. This corrupt pact allowed Beny Steinmetz Group Resources (BSGR) to obtain mining licences for the Simandou mine, one of the largest iron ore deposits in the world. Steinmetz’s lawyer has already announced that he will appeal the ruling.

The court case, which Public Eye has been closely following, has starkly revealed the inner workings of international corruption, against the backdrop of one of the poorest countries in the world. It has illustrated how the abusive use of tax havens facilitates the concealment of illegal activities in countries where governance and regulations are weak... In an exceptionally rare move, the judges have today convicted three separate ‘links’ of the corruption chain, all the way to the top...

This verdict sends a strong signal to the entire commodities’ industry, a sector which is highly exposed to corruption risks. The verdict must not, however, eclipse how difficult it remains for both Swiss and foreign prosecutors to investigate such complex cases...

Swiss legislation on money laundering must cover acts linked to the creation, management and administration of companies, trusts and foundations, in particular by lawyers, and require mandatory publication of data on the beneficial owners of companies in Swiss company registers. It is high time for the Swiss authorities to remedy the legal loopholes that facilitate predatory practices which harm poor people in resource-rich countries.