Paradoxes, Debates In Sonatrach-Eni-Saipem Corruption Case

The decision of the U.S. Securities and Exchange Commission, which monitors the New York Stock Exchange, to fine the Italian company Eni with $24.5 million, on the background of violations of accounting rules in connection with bribes of its branch, Saipem Algeria, for oil and gas projects, highlighting paradoxes and debates in this case that exploded in 2010 and which does not seem that it will end soon, as Italy court acquitted all the accused in the case, and the American financial administrative court announced it guilty, but an appeal was made in Algeria.

Among the most striking paradoxes is that the Milan Court of Appeals and in a decision that surprised everyone, acquitted all of the accused in the case last January, whether from the Italian or the Algerian side, in addition to Eni and its branch Saipem, and to return the value of the presumed bribes that had previously been confiscated that is amounted to 198 million euros, after 10 years between investigations and trials, and judicial cooperation spanning 4 continents.

The acquittal came in January, after a previous ruling that convicted the defendants in the case, including Farid Bedjaoui, who was accused of playing the role of bribe broker, with imprisonment of 5 years and 5 months, Omar Habour and Samir Ouriad as well, in addition to condemning officials of the company Saipem, while the CEO was acquitted who is also Ex-president of the club “AC Milan” Paolo Scaroni, then Saipem was fined with 400.000 euros and the value of bribes estimated at 197 million euros were confiscated for the General Tax Agency representing the Italian state.

A Total Appeal Of The Ruling In Algeria, A New Investigation And The Public Treasury Is The Civil Party

As for Algeria, and unlike the Italian Court of Appeal, Saipem announced a few weeks ago that the Procurator of the Republic in the Algerian Judicial Council informed it of the establishment of the public treasury as a civil party in the corruption case in which it is followed up in Algeria, the decision of which was appealed in February 2016 completely.

According to the statement of the financial outcome of Saipem, which was mentioned by “Echorouk” in a previous article, it was informed by the Court of Appeal of the Algerian Judicial Council, in October 2019, to cancel the ruling issued by the Algerian Judicial Council, on February 2016, and to open a new investigation on the case, and the public treasury was established as a civil party in the case.

The report indicated that the Court of Appeal of the Algerian Judicial Council asked Saipem for several documents that are related to the Basic Law, and information related to its branch in Algeria, “Saipem Contracting Algérie”, in addition to the company “SnamProgetti” (affiliated to Saipem), and they were summoned by the court’s investigating judge of Supreme Court in Algeria on October 16 and 21, 2019, as part of a preliminary investigation into a case dating back to 2008, related to the awarding of the completion contract for the LNG complex at Arzew Oran (western Algeria), known as “GNL 3”.

On the other side of the Atlantic Ocean, and despite the announcement by Saipem previously and “Eni” as well, that the US Department of Justice hid the judicial investigation concerning their activities in Algeria, but the condemnation came against “Eni” for reasons related to the activity of its branch Saipem in Algeria and was thus administrative and financial condemnation.

The U.S. Securities Commission and the stock exchange, which monitors the activity of the New York Stock Exchange and the companies listed there, announced that the Italian company Eni, listed on the New York Stock Exchange, had agreed to settle the accusations that it had violated the books related to an inappropriate payment scheme in Algeria, by the subsidiary Saipem that is owned by 43% for the “Eni” group.

According to the American Authority’s statement, Saipem entered into four false contracts with a broker between 2007 and 2010 to help obtain the contracts granted by the Algerian state-owned oil company, about Sonatrach and concluded that Saipem paid approximately 198 million euros to the broker (Farid Bedjaoui), who directed part of the money to Algerian government officials or their appointees.

It means Eni’s approval to pay the material settlement of its breaches, that it is almost official recognition of the facts attributed to its subsidiary in Algeria, although it is a decision issued by a financial administrative body and is not a judicial ruling.

The statement confirmed that “Eni” agreed without accepting or denying the results of the Securities and Exchange Commission, to enter an order to stop and cease violating the books and records and the provisions of internal accounting controls, and paying $ 24.5 million.