Saipem offers $30 million to settle Nigeria’s case

Saipem offers $30 million to settle Nigeria’s case

Saipem, said yesterday that it would pay a penalty of $30 million to settle a Nigerian investigation into a bribery case involving the building of gas facilities by an international consortium.
The deal with the Federal Government resolved a probe into the activities of Saipem unit, Snamprogetti Netherlands, as part of the TSKJ consortium, in connection with contracts to build liquid natural gas facilities on Bonny Island.
“The Federal Government of Nigeria agreed to dismiss all charges against Snamprogetti Netherlands and to renounce any civil claims and criminal charges in any jurisdiction,” Saipem said in a statement.
The TSKJ consortium, which included the United States (U.S.) company, KBR Incorporation, a former subsidiary of Halliburton, France’s Technip and Japan’s JGC, is being investigated in several countries over allegations it paid bribes to the Federal Government between 1994 and 2004 to get contracts worth more than $6 billion to build liquefied natural gas facilities.
On top of the criminal charge, Saipem will also pay $2.5 million as reimbursement of legal costs and expenses.
Saipem said the charges would not impact its results because its controlling shareholder, Eni, had agreed to indemnify it for the costs stemming from the inquiries when it sold Snamprogetti.

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