FBI investigates The Bribe Factory ... And now Eni?

FBI And Justice Department Probing Huge International Bribery Scandal (including Italian giant Eni)

The feds are working with Australian and British investigators to investigate Monaco firm Unaoil and its partners.

The FBI, U.S. Department of Justice and anti-corruption police in Britain and Australia have launched a joint investigation into revelations of a massive global bribery racket in the oil industry.

The news comes as Fairfax Media and The Huffington Post reveal that U.S. giant Halliburton and its former subsidiary Kellogg, Brown & Root are embroiled in the Unaoil bribes-for-contracts scandal through their operations in former Soviet states.

The biggest leak of confidential files in the history of the oil industry also unveils rampant corruption inside Italian oil giant Eni in many of the countries in which the firm has been contracted by national governments to manage their oilfields.

Texas firm National Oilwell Varco, Singapore conglomerate Keppel, Norway’s Aker Kvaerner and giant Turkish joint venture GATE also are implicated.

Information from hundreds of thousands of emails to Unaoil’s chief executive, Cyrus Ahsani, show individual executives and managers from Halliburton and Kellogg Brown & Root, which split in 2007, knew or suspected that Unaoil was acting corruptly to win contracts in Kazakhstan.

Managers from Eni, Spanish Firm Tecnicas Reunidas, French firm Technip, drilling giant MI-SWACO and Rolls-Royce not only actively supported bribery, but were offered, or pocketed, their own kickbacks. And U.S. defense giant Honeywell and Australian firm Leighton Offshore agreed to hide bribes inside fraudulent contracts in Iraq.

Companies approached by Fairfax Media and The Huffington Post about their contracts with Unaoil have emphasized their strong anti-corruption policies and have committed to investigating their dealings with Unaoil.

Unaoil denied any corruption.

Police begin probes, face questions about past failings

The U.S. Department of Justice, FBI, U.K. National Crime Agency and Australian Federal Police are now jointly investigating Unaoil and some its multinational clients. The probe is likely to be one of the world’s biggest, given the number of companies and countries involved.

The leaked Unaoil files show that in the Middle East, Unaoil bribed two Iraq oil ministers, Iranian oil chiefs and the right-hand man of Muammar Gaddafi’s son, among others.

Questions are emerging about how Unaoil operated for so many years with impunity, using bank accounts in New York and London to launder funds and pay bribes from 2000 to 2012, and possibly more recently.

Unaoil has its headquarters in Monaco and is controlled by the wealthy Ahsani family, led by patriarch Ata Ahsani and sons Cyrus and Saman.

The trio all have British passports. Many of Unaoil’s crooked deals were organized  in London, or used U.K. and U.S.-linked middlemen, bank accounts and shelf companies. British authorities appear to have been in the dark about Unaoil and the Ahsanis, who also operate a London property investment company. The British foreign office has even assisted Unaoil overseas, giving Unaoil and its executives briefings and support.

The Ahsani family, meanwhile, has mixed freely with the elite political and business crowd in Britain and elsewhere in Europe. Saman Ahsani sits on the board of an Iranian NGO in London, alongside former chancellor of the Exchequer Norman Lamont. The Ahsanis host charity events with Prince Albert and Princess Caroline of Monaco, and have paid Prince Albert’s good friend, Mike Powers, to sit on Unaoil’s advisory board.

There is no suggestion that Powers, Lamont or the Monaco royals were aware of Unaoil’s corruption.

The Caspian states 

To win contracts for its clients in Kazakhstan, Unaoil paid multiple bribes to Eni and Kazakh officials overseeing tenders in the giant Kashagan oilfield and elsewhere. 

It appears from the leaked files that senior managers from Kellogg Brown & Root, or KBR, were pushing Unaoil hard to win favor. One email written from a KBR manager told Unaoil to concentrate its efforts on “a good spaghetti house” and “a little shashlick.”  The code refers respectively to the officials from Italian company Eni and the Kazakh government who were overseeing the contracts KBR wanted to win.

The leaked files show Unaoil sought to corrupt a number of influential figures, including senior Eni manager Diego Braghi and Kazakh senior official Serik Burkitbayev, to give its clients an advantage over rival companies.

Unaoil used the same formula in neighboring Azerbaijan, where KBR also paid it millions of dollars to help it win contracts. A leaked KBR file said Unaoil’s key middleman in Azerbaijan was “very close to the President and his family ... [and] has an access to every office in the country”.

This middleman, Reza Raein, received millions of dollars from Unaoil in multiple bank accounts. In return, he leaked highly confidential information from senior Azeri government officials to Unaoil, which was fed back to its multinational clients.

Unaoil also sought to build its shady empire in Turkmenistan and Uzbekistan, including by liaising with a middleman who promised access to “the company of the [Uzbek] President’s daughter, Gulnara Karimova”.

Read more:

Unaoil: Police Launch Global Investigation

There’s A Huge New Corporate Corruption Scandal. Here’s Why Everyone Should Care.

Unaoil’s Huge New Corporate Bribery Scandal, Explained

U.S. Oil Industry Giant Paid Millions To A Company At The Center Of Huge Corruption Scandal

Inside The Battle Against Global Corruption

Note: This post has been copied in full Huffington Post (see this link)

The Bribe Factory: Eni is involved... Of course!

Large global companies involved, including the Italian giant Eni (of course!).

Where is the Business Ethics? Where is the Compliance? They are only corporate marketing tools?

Where are the Whistleblowers?

See more at:

PART 1:

PART 2 and 3:

THE KEY PLAYERS (See the list of companies involved)

Eni: a company that is a state within a State

On March 17th of 2016, Andrea Greco, an economics journalist for the Italian journal "La Repubblica" (The Republic), in a partnership with Giuseppe Oddo, launched the book "The Parallel State: The first investigation on Eni".

In nearly five years, these journalists researched the past six decades of Eni, one of the largest companies of the planet, interviewing former employees, experts, politicians, scholars, as well as current accounts and documents of all kinds. They narrate in this work that the chief executive of the Italian energy giant is more important than the Minister of Foreign Affairs, and the biggest scandals and obscure cases of corruption emerged in Eni, known as the "six-legged dog".

Among them, is highlighted the deaths, until today under mysterious circumstances, of Enrico Mattei, founder of the company, and also of former president, Gabriele Cagliari, involved in the "Tangentopoli Case", who committed suicide in prison. Not only that, but the last two CEOs (the current and his predecessor) are being investigated for international corruption both in Italy, Nigeria and England, especially for the payment of a millionaire bribery in the "OPL 245 Case".

In a book of this magnitude, there is a chapter dedicated to my country titled as "Brides and suffering in Brazil". The authors highlight the Brazilian's biggest corruption scandal involving the state-owned Petrobras as well as the payment of brides by Saipem (Eni's subsidiary). Besides, the summary of my fight story against Eni, of nearly 15 years, is part of this investigative book (see here). And this is a big victory for me!

But, it is not only my victory! It is also a victory to all the Whistleblowers that are being killed (and buried) around the world by companies that don't respect its own Code of Ethics, by employees and executives who steal corporate coffers and by the Board, that pretends nothing happens.

I hope my story can be an example and motivation to other Whistleblowers that should never give up trying to rescue and restore their name, their honor, their image and their reputation, which were thrown in trash cans by hypocrite companies that don't act with integrity, honesty, responsibility, transparency and uses "Ethics" just as a "marketing tool". Unethical companies need to be unmasked to no longer harm its employees and their families around the world.

Note: The summary of my fight story against Eni in this book

Do you want to learn how to kill a Whistleblower?

Do you want to learn how to kill a Whistleblower? The Italian giant Eni can teach you.

Learn the five steps of Eni’s Board on how to kill (and bury) a Whistleblower. See also documents relating to the “deadly strategy” of the Frivolous Lawsuits.

Step 1: The company receives a complaint and doesn’t respect the Code of Ethics;

Step 2: Soon after, the company dismisses the Whistleblower;

Step 3: The Ethics Committee doesn’t take any action to reverse the unjust retaliation against the former employee;

Step 4: The Board of Directors pretend that nothing happened;

Step 5: To bury the whistleblower we only need to move the "Frivolous Lawsuits".

People, companies and institutions must act to protect Whistleblowers who are being killed worldwide.

Note:
1) Eni's Frivolous Lawsuits
2) Defense of Mr. Filinto in Italian Justice

All the Best.

Douglas Linares Flinto

Chairman & CEO
Brazilian Business Ethics Institute

Eni's Whistleblower: 14 years in 14 paragraphs...

My story with the Italian giant and one of the largest companies of the planet began back in 2001 when I was an executive of Eni's Brazilian subsidiary and temporarily took over the main sales management of Agip Brazil. There, I received complaints of irregularities involving conflicts of interests, internal corruption, fraud, and even emission of "cold invoices". Respecting the determinations of Eni's Code of Ethics, I reported the misconducts and nonconformities with the words and spirit of the code, that as the company declares, is the guideline for all the six-legged dog's actions.

On the following weeks, little happened and I ended up getting fired. After invoking Agip Brazil's Committee of Ethics, I got an answer from the Brazilian operation saying that my resignation happened due to an "administrative and organizational restructuring" and not because of a "retaliation", as I stated. 

It was evident that the millionaire scheme that I had reported had metastasized throughout the company, and in Agip Brazil's backstage, the top management, in collusion, ran the illegalities and illegal activities practiced in Eni's Brazilian subsidiary.

So I decided to write to the Board and to the company's main shareholders, including to the main one, the Italian Government. The PwC, which at that time was the auditing firm hired by Eni, also received a copy of the new corresponding item. It's the Board of Directors the highest authority inside and outside the company walls, the embodiment of the "Corporate Governance" and the "Big Boss" of all the executives, including the CEO. Besides, the Board is responsible for ensuring the Code of Ethics. Above all, it is the "Guardian of Ethics"!

The resignations at Agip Brazil continued until it reached the commercial management. A few months later, Eni announced to the market the sale of all the Brazilian assets to the state oil company Petrobras, currently involved in the largest corruption scandal in Brazil. 

However, no contact was ever made with me, and Eni never answered any of my mails! On the contrary, after killing the "whistleblower" in Brazil, the company tried to do the same thing in Italy! 

In 2010, Eni decided to file a civil action in the Court of Rome against me and the Brazilian Business Ethics Institute - an institution I founded in 2003 to promote Ethics in the business and student world - demanding an indemnity of 30 million Euros for damage caused by my libel or slander.

In this action, oddly enough, Eni states that all the facts alleged by me are untrue and that, in fact, the company made an undercover investigation in Brazil to ascertain any damage. And I, for not collaborating, I ceased the trusting relationship, resulting in my resignation.

Instead of Eni accepting its mistakes, ascertain its faults, enhance controls and honor its own Code of Ethics, the company chose to hide behind a "frivolous lawsuit" in an attempt to intimidate and silence me, and leave under the carpet the ills of its managements.

Fortunately, in late 2014, the judge ruled "groundless" Eni's lawsuit. The company didn't accept my proposal agreement, but preferred appeal the sentence.

I became a victim of my own report! Eni destroyed my professional career when it put me on the "black list" of all the companies operating in my country. And there's more! Eni is also responsible for the loss of my retirement.

Despite everything, I will continue, until my last breath, with my personal quest to rescue and restore my name, my honor, my image and my reputation unfairly depreciated by the six-legged dog.

If I regret anything? Not at all! I would do it all over again. Why? The answer is simple: Ethics is always worth it!

My fight against a giant continues!

Douglas Linares Flinto
Chairman & CEO
Brazilian Business Ethics Institute

Eni: What you sow today you will reap tomorrow!

Shell, Eni in fresh trouble as Nigeria begins moves to withdraw OPL 245

The Nigerian government is set to retrieve one of Africa’s richest oil blocs from oil giants, Shell and Eni, PREMIUM TIMES has learnt.

Not only will the two oil giants lose OPL 245, should President Muhammadu Buhari approve the recommendations, they will also be fined billions of dollars for illegal activities, including paying money to fraudulent public officials and private citizens in order to secure the bloc.

The retrieval of the controversial oil bloc, estimated to contain about 9 billion barrels of crude, as well as placing heavy fines on the oil giants, is contained in a far-reaching recommendation by the office of the Director of Public Prosecution, DPP, Mohammed Diri.

The recommendation was at the instance of the Attorney General of the Federation and Minister of Justice, Abubakar Malami, who is set to advise the federal government on how to proceed on a controversial deal that is being investigated by authorities in four different countries.

In arriving at its recommendations, the DPP committee, which included lawyers from his office, called for the cancellation of the ‘settlement agreement’ that ceded the oil bloc to Shell and Eni.

Summary of OPL 245 history. Source: Global Witness

The ‘Settlement Agreement’

Made on April 29, 2011, the settlement deal is made up of three different ‘Resolution agreement’ signed by the parties involved in the OPL 245 saga.

The first, titled “BLOCK 245 MALABU RESOLUTION AGREEMENT” was signed between representatives of the federal government and those of Malabu, which was represented during the discussions by a former petroleum minister, Dan Etete.

The second agreement, titled “BLOCK 245 RESOLUTION AGREEMENT” was between the Nigerian government and officials of Shell and Eni/AGIP; while the third agreement, titled “BLOCK 245 SNUD RESOLUTION AGREEMENT”, was signed by officials of the Nigerian government and Shell.

The immediate past attorney general of the federation, Mohammed Adoke, and immediate past petroleum minister, Diezani Alison-Madueke signed all the agreements on behalf of the federal government. Both are among officials being investigated by Nigeria’s foremost anti-graft agency, the Economic and Financial Crimes Commission, for their roles in the scam.

The agreements saw the transfer of OPL 245, first from the Malabu to the Nigerian government and then from the government to Shell and Eni. The agreements also effectively cancelled all previous law suits and judgements related to the case.

It was based on these agreements that Shell and Eni paid a total of $1.3 billion into Nigerian government accounts, which as stated in earlier reports by PREMIUM TIMES, largely ended up in accounts of phoney companies and shady characters.

Cancel the agreement
The committee empanelled by the Attorney General Malami recommended that the agreement be cancelled, describing it as “null and void”, and saying it “should not be given any legal effect by the FGN (Federal Government of Nigeria) as doing so would amount to the FGN condoning and perpetuating illegality.”

One of the reasons the panel consider the agreement illegal is that the ex-convict, Mr. Etete, had no legal authority to negotiate the agreement on behalf of Malabu as he was not a shareholder of the company nor had the permission of the shareholders to do so.

Also, the oil bloc was awarded to Malabu in furtherance of Nigeria’s policy to encourage local companies and part of the conditions for the award was that “foreign participation interest in the blocks (OPL 245 and 214) shall not exceed 40%, i.e. 60/40 indigenous to foreign;” a fact Shell was aware of but chose to ignore.

The committee also sought the cancellation of the agreement based on a resolution by the last House of Representatives, which called for the cancellation and demanded that Shell be“censured or reprimanded… for its lack of transparency and full disclosure in its bid to acquire OPL 245.”

Also, although Shell and Eni claimed they only struck an agreement with the federal government and that they did not know, before the agreement, that the money they paid was going to Malabu, evidence by investigators in Italy and the Nigerian anti-graft agency, EFCC, shows that the oil firms knew the payment was eventually going to Malabu accounts controlled by Mr. Etete, a man once convicted for money laundering in France.

Apart from calling for the cancellation of the agreement, the DPP panel also recommended the full recovery of the money paid by Shell and Eni, describing it as “proceed of crime.”

PREMIUM TIMES had reported how the Federal Government paid over $800 million of the money into accounts controlled by Mr. Etete and how Justice Edis of the Southwark Crown Court in England refused to release $85 million of the remaining sum to Mr. Etete in December.

In refusing the to release the money, the judge questioned the actions of the Goodluck Jonathan presidency on the OPL 245 saga saying “I cannot simply assume that the FGN which was in power in 2011 and subsequently until 2015 rigorously defended the public interest of the people of Nigeria in all respects.”

Apart from recommending the withdrawal of the OPL 245 from Shell and Eni and calling for the retrieval of the money, the panel also asked the federal government to collaborate with all foreign agencies investigating the deal as well as prosecute all individuals and firms that violated local and international laws in the process.

In its recommendation, the panel also stated that the Federal Government can make “close to $10 billion” from the scandal.

Making money for Nigeria
To make the money, the panel recommended that Shell and Eni be fined at least $6.5 billion (five times the $1.3 billion Shell and Eni originally paid in 2011 the block).

This, the panel stated, should be done “in accordance with the relevant provisions of our laws in conformity with international best practices via the appropriate courts (at) home or abroad as the case may be.”

In other words, from the fine and the amount to be retrieved of the $1.3 billion, the government could make about $8 billion.

Also, in asking that the oil bloc be returned to Malabu’s original owners, the panel asked that the necessary licensing fees, transfer fees, signature bonus, and tax be paid by the firm; while 50 per cent of the rights to the bloc should return to Nigeria after three years based on original intent of awarding the bloc.

PREMIUM TIMES had reported how Malabu was awarded the oil block in 1998 with its shareholders being Mohammed Abacha, son of late military dictator, Sani Abacha, (50 per cent); Kweku Amafegha (the fictional character created by Mr. Etete, 30 per cent); and Wabi Hassan (wife of Hassan Adamu, former Nigerian ambassador to the U.S. 20%).

Human rights lawyer, Jiti Ogunye, had argued that the oil bloc ought to return to Nigeria and Malabu’s registration cancelled since it was based on falsehood.

“Section 190 and Section 436 (b) of the Criminal Code Act is applicable to the conduct of the promoter of Malabu, in that a false representation or declaration was made to induce the Corporate Affairs Commission to issue an incorporation certificate,” Mr. Ogunye said.

“Owing to the false representation, the Corporate Affairs Commission can approach the Federal High Court under Section 563 of CAMA to seek the withdrawal and cancellation of the Certificate of Incorporation of Malabu.”

Awaiting Malami, Buhari
The DPP report was to be sent to the Attorney General last week, a source at his office told PREMIUM TIMES, but was delayed due to Mr. Malami’s trip with President Muhammadu Buhari to the United Arab Emirates.

The report is to be sent this week to both the Solicitor General of the Federation, Taiwo Abidogun, and Mr. Malami, with the latter expected to advise President Buhari on the next steps based on the recommendations.

A source at the presidency told PREMIUM TIMES that the president was keenly following the matter and recently received a report on it from the office of the Vice President, who is coordinating the actions of the AGF, EFCC and Petroleum ministry on the matter.

Both the DPP and the Attorney General, in separate phone interviews, confirmed their offices were working on resolving the OPL 245 issue, but would not comment on the details.

“Malabu is a very sensitive issue and if there’s any resolution, I will have to get clearance before I can speak to the press on it,” the DPP, Mr. Diri, said.

Also, PREMIUM TIMES learnt that Shell was already aware of the government’s moves to cancel the agreement, and was lobbying against it.

However, the oil giant’s spokesperson, Precious Okolobo, declined comments on the matter.

Note: by Premium Time (Idris Akinbajo and Joshua Olufemi)

Research on Whistleblowers

We want to make a research on Whistleblowers of the corporate world. With this study, we can work on creating protection mechanisms to those who were motivated and encouraged by a Code of Ethics to report nonconformities with the word and spirit of this important instrument in the lives of thousands of companies around the world.

1. Have you ever suffered retaliation for making a complaint?

2. Do you know someone who has suffered retaliation for making a complaint?

3. What was the kind of retaliation? A functional demotion? Persecution of colleagues and superiors? A dismissal? 

4. Send us another informations or suggestions.

Thank you so much for your participation, stating that the data will be treated with absolutely confidentiality.

Answer the research on the following email:whistleblowers@institutebusinessethics.org.br. 

I'm making my life worth living!

For you, is the "whistleblower" a hero, a villain or a fool? Watch my video and make up your mind! (See the video on this LINK).

For me, doing the right thing... Acting ethically and with integrity... Makes our life worth living!

"I tell my story not because it is unique but because it is not"!

Observation: Get to know is this LINK my 15 years fight story agains the Italian giant oil Eni. 

This is Eni's Way...

In 2011, Shell and Eni paid US$1.1bn for one of West Africa’s largest oil fields, situated off the coast of Nigeria. The payment was equivalent to 80% of Nigeria’s proposed 2015 health budget, but the money did not benefit the country’s citizens. Instead it went to a company called Malabu Oil and Gas, which was secretly owned by the former oil minister who had granted his company rights to the oil field in 1998. Like many others, this deal for a massive state asset was conducted behind closed doors, without the knowledge of the public or investors.

Shell and Eni denied paying anyone other than the Nigerian government but there is clear evidence that they knew their payment would be diverted into private pockets. By doing business with corrupt politicians, Shell and Eni exposed their shareholders to enormous risk. The case is currently under investigation by authorities in the UK, Italy and Nigeria and there is a real chance the companies will lose their rights to the block, which is a critical plank in their strategy to replenish their reserves. 

The OPL 245 case provides a clear and compelling example of why laws mandating greater transparency over company ownership, and the payments companies make for oil, gas, and minerals, are needed. Laws requiring companies to disclose such payments already exist in draft form in the U.S., but Shell and other major oil firms including BP, Chevron and Exxon, are blocking their implementation. As OPL 245 shows, such obstructiveness goes against their own interests. 

As the case of Nigeria’s missing billion shows, there is no moral or economic argument for doing these deals in secret. The tide is turning towards transparency, and companies like Shell should champion this rather than trying to protect a redundant and outdated business model. 

See more:

1. Shell and Eni’s Misadventures in Nigeria

2. $1.1bn Malabu Scam: Leaked emails show Shell, Eni, Jonathan’s aides conspired to divert money to Etete

3. Milena Gabanelli in Report Program (Rai3)

Note: This post was replicated from the site of Global Witness

Eni pronto a devastare l'Adriatico

GIÀ SOTT'INCHIESTA PER LE ESTRAZIONI IN BASILICATA E PER UNA MEGA TANGENTE IN NIGERIA, ORA VUOLE AGGREDIRE IL MARE DEL MONTENEGRO DI FRONTE LA PUGLIA. 

L'Eni continua a devastare i territori e a mettere in campo tutte le sue forze e la sua potenza per estrarre petrolio e gas anche in zone a forte rischio che andrebbero salvaguardate sul piano ambientale. 

Questa volta il Cane a sei zampe è pronto a colpire il mare Adriatico dove ha ottenuto dal piccolo Montenegro quattro concessioni che interessano un'area di circa 1.200 chilometri quadrati di fronte le coste italiane di Monopoli e Brindisi. 

In barba ai rischi ambientali per l'ecosistema marino, alla pesca e al turismo, alla cattiva qualità del petrolio che si dovrebbe estrarre, Eni è riuscito a piegare il piccolo Stato dell'ex Jugoslavia ed ha siglato un accordo di sfruttamento trentennale dei giacimenti in mare insieme alla multinazionale russa Novatek che deterrà il 50 per cento delle concessioni. 

Il colosso petrolifero italiano pur di fare affari e di soddisfare gli appetiti dei suoi azionisti, compreso lo Stato italiano che detiene il 30 per cento delle quote, non si ferma davanti a niente e a nessuno. 

Grazie alle sue commistioni e alle coperture politiche, ieri di Prodi e Berlusconi e oggi di Renzi, non si è fermato dopo l'inchiesta Trivellopoli sullo scempio delle estrazioni petrolifere in Basilicata e non ha battuto ciglio dopo lo scandalo in Nigeria per il quale sono indagati, tra gli altri, l’amministratore delegato Claudio Descalzi e il predecessore Paolo Scaroni (in ballo c'è una maxi tangente di circa due miliardi di dollari pagata dall’Eni, secondo l’accusa, per aggiudicarsi l’acquisto di un giacimento petrolifero nigeriano). 

La sua forza economica, le sue campagne di comunicazione, le sue capacità di persuasione condizionano e travolgono tutti. Ancora di più incidono in piccole realtà come può essere il Montenegro con i suoi 670mila abitanti e una forte crisi economica e sociale. 

Il recente via libera alle prospezioni su ben 35mila chilometri quadri, ovvero lungo tutto l’Adriatico italiano, insieme ai progetti di ricerca tra Montenegro e Albania, conferma che la corsa all’oro nero in Adriatico è ripartita. 

L'Eni, infatti, vuole confermare la sua posizione in Adriatico, dove è leader dagli Anni 60, e vista la forte concorrenza mondiale accaparra tutto quello che può laddove la politica e le complicità glielo consentono. 

Toccherebbe al governo italiano dare l'esempio e produrre un impegno per fermare l’estrazione di idrocarburi nel Mediterraneo, facendosi promotore anche nei confronti degli altri Paesi, ma sappiamo che l'attuale governo Renzi, dopo il varo della legge Sblocca Italia, è d'accordo con l'Eni e non lo farà mai.

Article by Piernicola Pedicini - Portavoce M5S al Parlamento Europeo