Milan Judge Postpones Eni Hearing In Nigeria Graft Probe
September 22 2009 - 7:58AM
Dow Jones News
A Milan judge Tuesday postponed until next month a hearing on a
request to ban Eni SpA (E) and Saipem SpA (SPM.MI) from operating
in Nigeria, as the two energy firms are alleged to be part of a
scheme that bribed officials in the West African country.
Judge Mariolina Panasiti postponed the hearing until Oct. 21,
said Paola Severino, an Eni lawyer, at the end of a hearing at the
court house in Milan.
"The judge has adjourned the hearing in order to have more time
to translate documents from English to Italian," said Severino.
Eni and Saipem, the oil services company it controls, risk a
temporary ban from working with Nigerian National Petroleum Corp.
in the West African country as part of an investigation by Milan
prosecutors into alleged graft that took place up to 2004.
Milan prosecutors Fabio De Pasquale and Sergio Spadaro called
for the ban in July.
Eni, which has been cooperating with the prosecutors, has said
its future results could suffer from a negative outcome of the
case. In April, Chief Executive Paolo Scaroni said Eni was
following the "matter with a lot of attention."
The probe centers around TSKJ, a private company comprising
Technip SA (TEC.FR) of France; Snamprogetti, a former affiliate of
Eni; JGC Corporation (1963.TO) of Japan and KBR Inc. (KBR), which
was spun off by Halliburton (HAL) two years ago.
Snamprogetti is now part of Saipem.
In February, U.S. authorities said Halliburton Co. (HAL) and KBR
agreed to pay $579 million in fines after pleading guilty to
criminal charges for bribing Nigerian government officials for more
than a decade.
The two companies admitted they paid millions of dollars to
Nigerian government officials as part of a joint venture to win
contracts worth more than $6 billion to build a liquefied natural
gas plant on Bonny Island.
According to the Department of Justice, KBR was part of a
four-company joint venture - referring to TSKJ - that received the
contracts. As part of its plea, KBR admitted to conspiring with
those partners to promise and pay bribes.
-By Sabrina Cohen and Liam Moloney, Dow Jones Newswires; +39 02
5821-9906; sabrina.cohen@dowjones.com