SAN DONATO MILANESE, Italy — Brazil’s administrative authority Controladoria-Geral da União has served a sanctioning measure issued against Saipem SA and Saipem do Brasil.
This involves the temporary suspension from contracting with the Brazilian public administration for two years, based on alleged irregularities related to the award in December 2011 of a contract to install a gas pipeline.
The final ruling in the administrative proceedings is an amendment of the interim decision issued in late December 2022, which called for a ban on the two companies contracting with the Public Administration.
Saipem said the sanction has no impacts on its ongoing projects in Brazil as it applies solely to potential new contracts and concerns exclusively dealings with the Public Administration.
However, Saipem SA and Saipem do Brasil both intend to appeal the decision in the appropriate jurisdictions as they consider it to be inconsistent with what they demonstrated during the proceedings.