With reference to the press release of May 30 2019, Saipem reports that the Brazilian Controladoria-Geral da União (CGU) has published today its final ruling in the administrative proceedings initiated against Saipem SA and Saipem do Brasil in reference to alleged irregularities in the award, dating back to December 2011, by the BM-S-11 Consortium, of the contract for the installation of a gas pipeline.
The CGU has amended its previous interim decision consisting in the ban on contracting with the Public Administration issued on December 29 2022 and substituted it with the temporary suspension limited to a period of two years.
The reclassification of the sanction was obtained also thanks to the recognition by the same CGU of the effectiveness of the Compliance model of the two companies.
The sanction has no impacts on the ongoing projects in Brazil since it applies solely to potential new contracts and concerns exclusively dealings with the Public Administration.
Notwithstanding the above, Saipem SA and Saipem do Brasil intend to appeal the decision in the appropriate jurisdictions, considering it to be inconsistent with what the companies demonstrated during the proceedings.
For further information, please refer to the detailed description of the proceedings contained in the 'Legal Proceedings' section of Saipem S.p.A.'s Interim Financial Report as of June 30, 2023.
Source: Saipem
