By Eric Sylvers
MILAN--Italian prosecutors asked a judge to indict the former
chief executive of Eni SpA on corruption charges, alleging he was
involved in a kickback scheme that helped win the giant energy
company contracts in Algeria.
Paolo Scaroni, 68 years old, who has been deputy chairman of
Rothschild Group since finishing a nine-year stint at the helm of
Eni last year, is accused of being involved in funneling money to
Algerian officials who awarded the contracts. He was also accused
of tax fraud.
Through a spokesman on Thursday, Mr. Scaroni denied any
wrongdoing.
In addition to Mr. Scaroni, seven others are named in the
requested indictment, including top executives at Saipem--an
oil-services company 43% owned by Eni that won the contracts in
Algeria--and two people alleged to have provided the link between
Saipem and the Algerian officials. The prosecutors also asked for
indictments of Eni, Italy's largest company by market value, and
Saipem.
Eni and Saipem declined to comment. In the past, Eni has
maintained that it has no control over Saipem, despite its large
stake.
An internal Saipem investigation in 2013 carried out by external
consultants found no evidence that illegal payments had been made
to Algerian officials to win the contracts. Saipem at the time said
it forwarded the findings to the Milan prosecutors who already had
begun their own investigation.
Milan-based Saipem has been dogged by the Algerian corruption
allegations over the past several years that together with
disappointing financial results and two profit warnings have sent
the stock plunging. Its shares, down about 50% in the past 12
months, added 2.1% Thursday.
Italian prosecutors couldn't be reached by telephone and didn't
respond to emails seeking comment.
At a preliminary hearing, prosecutors will present their
findings to a judge who will then decide whether to indict Mr.
Scaroni and the others or to close the case.
Write to Eric Sylvers at eric.sylvers@wsj.com
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