Saipem Convicted in Algeria Corruption Case; Eni Cleared

TUNIS (Capital Markets in Africa) – Saipem SpA was convicted in Milan of corruption linked to energy contracts in Algeria, while fellow Italian oil company Eni SpA was cleared.

The oil-services company was fined 400,000 euros ($467,800), and another 197 million euros will be confiscated as part of the conviction, according to judge Giulia Turri. Eni, which owns 31 percent of Saipem, Eni’s former Chief Executive Officer Paolo Scaroni and current Chief Upstream Officer Antonio Vella were cleared of any wrongdoing. Saipem may appeal the ruling, the company said in a statement. Eni said it was satisfied with the judgement.

Saipem was convicted on one count and cleared on another by the court on Wednesday. The company has been under judicial investigation in Italy since 2013 following claims that it paid bribes to secure a series of contracts in Algeria worth billions of dollars. The investigations involve the award of contracts up until 2009.

Saipem fell as much as 2 percent and traded 0.7 percent lower at 4.883 euros at 9:24 a.m. in Milan. The shares are up 28 percent this year after declining in each of the past seven years. Eni rose 0.2 percent.

The probe cost Saipem’s former CEO Pietro Franco Tali his job in 2012. Eni’s ex-Chief Financial Officer Alessandro Bernini, who was also Saipem’s finance boss until 2008, stepped down at the same time. The case also embroiled Scaroni, who had the top job at Eni from 2005 to 2014.

Scaroni and Eni were also cleared by a Milan prosecutor in 2015, only for the decision to be annulled months later. In July 2016, a judge ordered Saipem, Eni and Scaroni to stand trial.

Source: Bloomberg Business News