Italian Oil Boss Accused Of Corruption Over Nigeria Deal

Claudio Descalzi was appointed to his post by the Italian government. AFP

Italian oil giant Eni has rallied behind its CEO Claudio Descalzi after prosecutors decided that he should stand trial for alleged corruption related to the firm's 2011 purchase of a Nigerian exploration licence.  

BBC Africa Live report continues:

"The Board of Directors confirms its total confidence... Descalzi was not involved in any way in the conduct under investigation," the state-controlled company said in a statement.

A judge would have to approve the decision by prosecutors to try Mr Descalzi, the UK-based Financial Times newspaper reported. 

Prosecutors want to try him and 10 other individuals who were involved in the US$1.3bn (£1bn) transaction in oil-rich Nigeria, it quoted lead prosecutor Fabio De Pasquale as saying. 

Eni and Royal Dutch Shell, which jointly owns the licence, have also been charged as companies, he said, the newspaper reported.   

Eni Chief Claudio Descalzi Charged With International Corruption

Financial Times report that Claudio Descalzi, chief of Eni, has suffered a setback after Italian prosecutors charged him with international corruption following a prolonged investigation into the Italian vitality group’s 2011 buy of a Nigerian exploration licence. 

Mr Descalzi was requested to face trial alongside with Paolo Scaroni, the previous chief of Eni, in addition to 9 different people who have been concerned within the US$1.3bn transaction, in accordance with Fabio De Pasquale, the lead prosecutor on the case. Eni and Royal Dutch Shell, which collectively owns the licence, have additionally been charged as corporations, he mentioned. 

The transfer by prosecutors in Milan comes at a clumsy time for Mr Descalzi, who’s hoping to be reappointed as chief of Eni by the Italian authorities when his time period expires later this 12 months.

The case additionally provides to the judicial travails of prime managers of Italy’s main state-controlled corporations: final week, Mauro Moretti, chief of Leonardo, the Italian defence group, was sentenced to seven years in jail in connection with his position in a 2009 rail catastrophe, though he’s more likely to enchantment.

Mr Descalzi was notified that he was below investigation within the Nigerian case in September 2014, shortly after he was appointed to the job by Matteo Renzi, the previous prime minister. He has constantly maintained his innocence. 

In a press release, Eni’s board expressed its “full confidence” in Mr Descalzi. An Eni spokeswoman mentioned she needed to “reiterate the propriety” of the deal. She added that an unbiased probe by a US legislation agency employed by Eni to look at the settlement had discovered that the acquisition of the licence had “respected the existing laws”. 

Eni has not but been notified that Mr Descalzi has been charged. A decision should log off on the prosecutors’ request for a trial within the coming months. 

The investigation focuses on an offshore exploration bloc known as OPL 245, which is estimated to comprise as much as 9bn barrels of oil and is taken into account considered one of Nigeria’s most highly-prized vitality prospects.

Along with the investigation in Italy, the deal has additionally attracted scrutiny in Nigeria: a court docket within the West African nation ordered Eni and Shell to forfeit the licence quickly, pending an inquiry by the nation’s personal anti-corruption agency.

The principal accusation is that Eni and Shell knew the cash paid to the federal government for OPL 245 would then be funnelled to different Nigerian people, primarily as bribes.

But Eni and Shell have mentioned that they merely transferred cash to the Nigerian authorities, without making any preparations with third events or the final word beneficiaries.

At Eni, Mr Descalzi has been credited with shepherding the corporate via the current low oil worth atmosphere and securing large exploration successes, comparable to the invention of a large gasfield off the coast of Egypt known as Zohr. Eni just lately cashed in on Zohr by promoting stakes within the challenge to BP and Rosneft. 

Shell declined to remark. People briefed on the matter mentioned Shell had not to date acquired an indictment from Italian prosecutors. Mr Scaroni and Mr Descalzi couldn’t instantly be reached for remark.