Eni Enters Agreements with U.S. Department of Justice and SEC Over Former Subsidiary Snamprogetti
Snamprogetti Netherlands B.V., a former indirect subsidiary of Eni and current subsidiary of Saipem, has entered into a deferred prosecution agreement with the U.S. Department of Justice ("DOJ") to resolve an investigation into Snamprogetti Netherlands B.V.'s activities in connection with contracts to build liquid natural gas facilities on Bonny Island, Nigeria.
Pursuant to the agreement, the DOJ filed charges against Snamprogetti Netherlands B.V. including a count of conspiracy and violating certain provisions of the U.S. Foreign Corrupt Practices Act. Snamprogetti Netherlands B.V. will pay a criminal penalty of $240 million. If it satisfies the terms of the agreement, the charges against Snamprogetti Netherlands B.V. will be dismissed. Eni and Saipem have also agreed to guarantee the obligations of Snamprogetti Netherlands B.V. towards the DOJ.
Eni and Snamprogetti Netherlands B.V. have also entered into a consent order with the SEC, in which they consent to the filing of a complaint and the entry of a final judgment that alleges that Eni and Snamprogetti violated certain sections of the Securities Exchange Act of 1934. Under the consent order, Eni and Snamprogetti have jointly agreed to pay disgorgement to the SEC in the amount of $125 million.
The U.S. authorities' charges relate to actions carried out by Snamprogetti and others for a series of contracts to build liquid natural gas facilities in Bonny Island, Nigeria. As the U.S. authorities' court filings indicate, the criminal activity with which Snamprogetti Netherlands B.V. was charged ceased by June 15, 2004.
Eni, Saipem, and Snamprogetti cooperated with the U.S. authorities' investigations. In the agreements, the SEC and DOJ did not require the implementation of any independent compliance monitor. Since the conduct at issue, Eni, Saipem, and Snamprogetti Netherlands B.V. 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.
Published 07/07/2010
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