Italy’s “Saipem” Appeals Against Algiers’ Court Verdict In Corruption Case

The Italian energy company “Saipem” said that it will appeal the ruling issued against it by the Sidi M’hamed Court of Algiers, in the framework of the Sonatrach case, and the decision to fine it with 192 million Euros.

A statement by the Italian company, Saipem, published on its official website, stated that the parent company, along with its branch in Algeria and “Snam Progetti” Algeria branch, will also file an appeal with the suspension of the application of the consequences of the ruling issued by the Sidi M’hamed Court, which impose on it a fine of 192 million euros.

This is related to the background of accusations of corruption in the LNG project in Arzew, which the Italian energy company obtained in 2008.

The company indicated that the ruling came due to acts punishable by Algerian law related to “raising prices when contracts are awarded with a public institution of an industrial and commercial nature that benefits from the authority or influence of representatives of this institution” and “a false customs declaration”.

The company pointed out that the outcome of the judgment (i.e. after the appeal) will determine how to calculate the value of the fine in the company’s accounts registered on December 31, 2021, whose payment remains pending in view of the appeal that will be submitted.

The rulings issued by the Sidi M’hamed Court of Algiers in the Sonatrach case, former Energy Minister Chakib Khelil, caused an “earthquake” for the Italian company “Saipem” whose shares in the Milan Stock Exchange were affected, and immediately after the verdict was pronounced, it announced a change in its strategic plan 2022-2025.

Italian media reported that Saipem shares fell on the Milan Stock Exchange immediately after the issuance of a fine in Algeria against the background of a corruption case in the deal to complete a liquefied gas plant in the western province of Oran, “GNL3 Arzew”, with a value of 19 billion dinars, equivalent to 192 million euros. As a result, the stocks declined by 0.75 percent.

Immediately after the ruling was issued last Monday, February 14, Saipem issued a statement the next day (February 15), in which it stated that it would include changes to its strategic investment plan between 2022-2025, a move that observers in Italy interpreted that the company is experiencing internal financial difficulties, especially after the Algerian judiciary issued a fine of 192 million Euros.