{"id":14095,"date":"2017-12-21T00:00:00","date_gmt":"2017-12-20T23:00:00","guid":{"rendered":"https:\/\/www.recommon.org\/judge-orders-biggest-corporate-bribery-trial-history-shell-eni-ceo-executives\/"},"modified":"2022-02-22T16:16:52","modified_gmt":"2022-02-22T15:16:52","slug":"judge-orders-biggest-corporate-bribery-trial-history-shell-eni-ceo-executives","status":"publish","type":"post","link":"https:\/\/www.recommon.org\/en\/judge-orders-biggest-corporate-bribery-trial-history-shell-eni-ceo-executives\/","title":{"rendered":"Judge orders biggest corporate bribery trial in history against Shell, Eni, CEO and executives"},"content":{"rendered":"
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\"palazzo-Eni\"<\/a>
Eni office in Rome, photo Re:Common<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n
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Royal Dutch Shell and Italian oil giant Eni have been ordered to stand trial in Milan on charges of aggravated international corruption for their role in a 2011 $1.1bn deal for Nigerian oil block OPL 245. Mrs Justice Barbara handed down the ruling today. The judge set March 5 as the date for the trial to begin.<\/p>\n

Eni\u2019s current CEO Claudio Descalzi, former CEO Paolo Scaroni, Chief Operations and Technology Officer Roberto Casula were also ordered to face trial alongside four Royal Dutch Shell former staff members including Malcolm Brinded CBE, former Executive Director for Upstream International and two former MI6 agents employed by Shell.<\/p>\n

No company as large as Royal Dutch Shell or such senior executives of a major oil company have ever stood trial for bribery offences.<\/p>\n

The investigation by the Milan public prosecutor was triggered by a complaint filed in Autumn 2013 by Global Witness, The Corner House, Re:Common and Nigerian anti-corruption campaigner Dotun Oloko. The case has also been investigated in Nigeria and the United States following the groups\u2019 complaints. Public prosecutors in The Netherlands are also investigating the case.<\/p>\n

\u201cThe Nigerian people lost out on over $1 billion dollars, equivalent to the country\u2019s entire health budget, as a result of this corrupt deal. They deserve to know the truth about what happened to their missing millions.\u00a0 We welcome the prosecutor\u2019s efforts to bring this case to trial. It will be the biggest corporate bribery trial in history \u2013 and act as a warning to others who see corruption as a route for quick financial wins\u201d, said Simon Taylor, co-founder of Global Witness.<\/p>\n

In a statement today Shell said \u201cWe are disappointed by the outcome of the preliminary hearing and the decision to indict Shell and its former employees.\u00a0 We believe the trial judges will conclude that there is no case against Shell or its former employees.\u201d<\/p>\n

Eni said \u201cEni\u2019s Board of Directors has reaffirmed its confidence that the company was not involved in alleged corrupt activities in relation to the transaction. The Board of Directors also confirmed its full confidence that chief executive Claudio Descalzi was not involved in the alleged illegal conduct and, more broadly, in his role as head of the company. Eni expresses its full confidence in the judicial process and that the trial will ascertain and confirm the correctness and integrity of its conduct.\u201d<\/p>\n

Antonio Tricarico of Italian NGO Re:Common said, \u201cPrime Minister Renzi was utterly wrong in 2014 when he defended Mr Descalzi\u2019s appointment as Eni\u2019s CEO, by warning that it would \u2018not allow a media scoop to put jobs at risk, or a notice of investigation issued on newspapers to change the business policy of a country\u2019. If the deal for OPL 245 represents business as usual for Italy\u2019s biggest company, partly controlled by the government, prosecutors were right to investigate and right to bring this matter before the courts. Renzi should apologise to the Italian and Nigerian public\u201d.<\/p>\n

\u201cThis case heralds the dawning of the age of accountability, a world where even the most powerful corporations can no longer hide their wrongdoing and avoid justice.\u201d Said Lanre Suraju, Chairman of Nigerian NGO Human and Environmental Development Agenda.<\/p>\n

For years, Shell had claimed that it only paid the Nigerian Government for the oil block. But after the joint investigations of Global Witness and Finance Uncovered, Shell confessed it had dealt with former oil minister Dan Etete, via his front company Malabu. Dan Etete was convicted of money laundering in France in 2007. Etete had awarded the OPL 245 oil block to his secretly owned company while serving as oil minister.<\/p>\n

In December 2016, the Milan Public Prosecutor alleged that $520 million from the deal was converted into cash and intended to be paid to the then Nigerian President Goodluck Jonathan, members of the government and other Nigerian government officials. The prosecutor further alleges that money was also channelled to Eni and Shell executives with $50 million in cash delivered to the home of Eni\u2019s then Head of Business for Sub-Saharan Africa, Roberto Casula.<\/p>\n

Nigerian authorities have also filed charges against a Shell subsidiary and Eni as well as several of their staff. In January Nigerian law enforcement also charged Mohammed Adoke, the former Nigerian Minister of Justice and Attorney General with money laundering over his receipt of $2.2m in alleged proceeds of the OPL 245 deal.<\/p>\n

The Nigerian government successfully recovered US$85m in proceeds of the deal from the UK. The money had previously been frozen as suspected proceeds of crime at the request of Italian authorities. The Nigerian government has also issued a billion dollar civil claim against JP Morgan for their role as a banker to the deal. JP Morgan has stated that they consider the allegation against them to be \u201cunsubstantiated and without merit\u201d.<\/p>\n

 <\/p>\n

\u201cThis is not a case involving a few rotten apples,\u201d said Nick Hildyard of Corner House. \u201cThe evidence points to systemic corruption \u2013 from the top down. In this case Italy has championed the rule of law over abusive corporate power. The world waits to see if the UK and The Netherlands, where Shell is based, will have the backbone to follow suit.\u201d<\/p>\n

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Notes to editor:<\/h2>\n<\/div>\n
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  1. In December 2016 money laundering charges were filed by Nigerian law enforcement against Dan Etete and the former Nigerian Attorney General and Justice Minister Mohammed Adoke. In a statement in December 2016, Mohammed Adoke said: \u201cI hope to at the appropriate time make myself available to defend the charge for whatever its worth.\u201d He also emphasised that he did not benefit from the deal, which he said saved the government from a breach of contract suit in which Shell was claiming $2 billion. He called the charges “orchestrated plans to bring me to public disrepute in order to satisfy the whims and caprices of some powerful interests on revenge mission.” The full statement from Mohammed Adoke is available at\u00a0http:\/\/thenationonlineng.net\/malabu-will-come-defend-adoke\/<\/a><\/li>\n
  2. Goodluck Jonathan\u2019s statement addressing the allegations against him is available\u00a0 at http:\/\/www.premiumtimesng.com\/news\/headlines\/220059-breaking-malabu-oil-deal-jonathan-breaks-silence-bribe-allegation.html<\/a><\/li>\n
  3. Dan Etete\u2019s response to the public allegations against him is available at: https:\/\/www.thisdaylive.com\/index.php\/2017\/02\/08\/etete-government-did-not-invest-a-dime-in-malabu-oil\/<\/a><\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Royal Dutch Shell and Italian oil giant Eni have been ordered to stand trial in Milan on charges of aggravated international corruption for their role in a 2011 $1.1bn deal for Nigerian oil block OPL 245. Mrs Justice Barbara handed down the ruling today. 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