Algeria energy scandal: officials jailed, dismissed and put under judicial surveillance

Algerian energy minister Youcef Youcfi failed to eliminate corruption caused by Chakib Khelil who had dominated the sector for more than ten years.

Three years ago, the Sonatrach scandal broke, its CEO Mohamed Meziane was put under judicial surveillance and his assistants were jailed on corruption-related charges.

Earlier last week, CEO of the National Gold Mine Exploration Company (AGNOR) was dismissed as reports showed that corruption practices were discovered at the company.

Sonelgaz’s scandals borke immediately after Khelil had gone. He had issued the electricity and gas law 01-02 in 2002. It stipulates to ban public monopoly over electricity production activities and keep it on transportation activities. Experts believed that this law opened door to foreign companies to locally produce electricity. That means the government was obliged to buy electricity from foreigners at an international price and sell it to local consumers. That really happened at a number of power plants in the provinces of Skikda, Berouaghia and Oran.

Investigations showed that deals concluded by AGNOR in the last three years led to the dismissal of its CEO. He was replaced by a former executive at the energy ministry, in an attempt to end wrongdoings related to deal illegally concluded with subcontractors.

The energy ministry also liquidated another scandal related to gold mines in the province of Tamnerasset (south of Algeria). An Australian partner planned to cheat on Algeria’s exterior Bank and Sonatrach.