Saipem: No Payments Made to Algeria Officials; Finds Internal Violations

   By Liam Moloney 
 

Saipem SpA (SPM.MI) on Wednesday said an internal investigation found no evidence of illegal payments to Algerian officials, although it discovered violations of internal procedures.

Saipem, Italy's biggest oil-services company by market value, has shed about half of its market capitalization since the start of the year after it emerged that it was being probed by Milan prosecutors over possible corruption for some of its contracts in Algeria, as well as issuing two profit warnings. It denies wrongdoing.

On Wednesday, the company's market value was 6.61 billion euros ($8.59 billion).

In a statement, Saipem said the internal investigation was conducted by external consultants in relation to some brokerage contracts and subcontracts in Algeria. No evidence of payments to Algerian public officials was found.

The Milan-based company said its board of directors decided to take legal action against certain unnamed former employees and suppliers to protect the interests of Saipem.

The company said it will hand over to Milan prosecutors the results of the internal investigation.

The Italian company also said that, at the request of the U.S. Department of Justice, it entered a "tolling agreement," which extends by six months the limitation period applicable to any possible violations of U.S. federal laws. The agreement doesn't constitute admission of unlawful acts by Saipem, it added. Saipem said it will offer total collaboration to any eventual investigation by U.S. authorities.

Saipem's biggest shareholder is Eni SpA (ENI.MI, E), with a 43% stake.

Write to Liam Moloney at [e-mail]

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