Criminal Capitalism

A British oil trading giant has agreed to a multimillion-pound payout to settle a huge damages claim from thousands of Africans who fell ill from tonnes of toxic waste dumped illegally in one of the worst pollution incidents in decades.
Trafigura, a London-based company which bills itself as one of the world's largest oil traders, said it was in talks to reach a "global settlement" to the claim by 30,000 people from Ivory Coast, who brought Britain's largest-ever lawsuit after contaminated sludge from a tanker ship was fly-tipped under cover of darkness in August 2006.
The incident caused at least 100,000 residents from the west African country's most populous city, Abidjan, to flood into hospitals and clinics complaining of breathing difficulties and sickness. Investigations by the Ivorian authorities suggested that the deaths of at least 10 people were linked to the waste.

Trafigura struck a series of bargains on the international markets in 2005 and early 2006 to buy cheap and dirty petroleum, called coker gasoline, which the company believed could then be cleaned up at profit of £4m per cargo.Rather than send the oil to a refinery, Trafigura used the Probo Koala, a Panamanian tanker chartered by the company since 2004, as a floating processing plant while it was anchored off Gibraltar. "This is as cheap as anyone can imagine and should make serious dollars."
Using an ad hoc process of adding caustic soda and a catalyst to the coker gasoline, the oil was "cleaned" to produce a sellable fuel and a toxic sludge which sank to the bottom of the ship's tanks. "This operation is no longer allowed in the European Union, the United States and Singapore" it is "banned in most countries due to the 'hazardous nature of the waste'", one e-mail warns.

Problems began for Trafigura when it needed to dispose of the slurry. When the Probo Koala arrived in Amsterdam in July 2006 and tried to unload the contaminated slops, allegedly described as "watery cleaning liquids", the process caused a health alert and Trafigura was informed the cost of dealing with its by-product would rise from £17 per cubic metre to £80.Rather than pay the estimated bill of £500,000, Trafigura ordered the waste to be pumped back on to the Probo Koala and the vessel travelled to west Africa where in Ivory Coast fleet of 12 trucks hired by a local waste contractor, Compagnie Tommy, which had only received its operating licence weeks earlier, offloaded the sulphurous sludge from the cargo vessel and deposited the waste at 18 locations around Abidjan .

A United Nations report found that "there seems to be strong prima facie evidence that the reported deaths and adverse health consequences are related to the dumping".

Trafigura repeatedly deployed one of Britain's most aggressive firms of lawyers to dispute reporting on the case by media outlets including the BBC. Trafigura, a privately-owned multinational last year claimed a turnover of $73bn (£44bn). The figure is double the entire GDP of Ivory Coast, where half the population of 21 million live on less than a dollar a day.