Saipem Receives Green Light to Resume Operations in Brazil
After facing a two-year suspension from signing new contracts with the Brazilian public administration, Italian offshore engineering and construction company Saipem has been given the go-ahead to resume normal operations in Brazil.
The suspension was a result of allegations regarding irregularities surrounding a deal signed with Petrobras back in 2011. It was alleged that a representative of Saipem had bribed an ex-Petrobras director in order to secure a $140 million pipeline installation contract from the BM-S-11 consortium.
In a significant development, the Federal District Court of Brasilia recently annulled the order from the Controladoria-Geral da União (CGU) that had prohibited Saipem and its Brazilian subsidiary from contracting with the Brazilian public administration.
Despite this positive development, there was still the issue of the mandatory appeal phase under Brazilian law, which had initially suspended the effects of the annulment. However, last Friday, the Federal District Court of Brasilia confirmed to Saipem that the annulment of the suspension was now effective immediately, regardless of any ongoing appeals.
In response to this news, Saipem released a statement saying, “As a result, Saipem and Saipem do Brasil, whilst pending the appeal proceedings, are once again fully operational with state-owned companies in the Brazilian market, with immediate effect.”
This decision marks a significant turning point for Saipem as it can now resume its operations in Brazil and continue its work with state-owned companies in the country. It also highlights the importance of adhering to ethical business practices and the consequences that can arise from any allegations of misconduct.