Eni and Snamprogetti to pay US$ 365 million bribery fines
08 July 2010
Eni and its former subsidiary Snamprogetti - now part of Saipem - have agreed to pay a total of US$ 365 million to the US Securities and Exchange Commission (SEC) and Department of Justice (DoJ) for their part in bribing Nigerian officials to win contracts on the Bonny Island LNG project.
The companies will jointly pay US$ 125 million to settle charges brought by the SEC, and Snamprogetti will pay a further US$ 240 million to the DOJ to settle criminal charges against it.
The companies were part of the TSKJ consortium that won US$ 6 billion of work to construct and extend the Bonny Island facility. Two other members of the consortium, Technip and KBR, have already agreed settlements with US authorities that will see some US$ 917 million paid in fines. The new penalties against Eni and Snamprogetti bring that total to more than US$ 1.28 billion.
Commenting on the latest settlement, SEC divisional director for enforcement, Robert Khuzami said, "The elaborate bribery scheme featured sham intermediaries, Swiss bank accounts and carloads of cash as everyone involved made a concerted effort to cover their tracks."
A statement from Eni said, "Since the conduct at issue, Eni, Saipem, and Snamprogetti have made substantial enhancements to their anti-corruption compliance programs, which monitor Eni and its subsidiaries' compliance systems. Eni and its subsidiaries are committed to continuous improvements to their internal compliance program and policies."
