Petrofac Facing GBP400 Million Legal Fight Over Bribery Allegations

LONDON (Alliance News) - Petrofac PLC is facing the prospect of a GBP400 million payout to ...

Alliance News 11 February, 2019 | 9:26AM
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LONDON (Alliance News) - Petrofac PLC is facing the prospect of a GBP400 million payout to investors amid legal action linked to an alleged bribery scandal at the oil services firm.

Last week David Lufkin, the former global head of sales at Petrofac, pleaded guilty to offering corrupt payments in an attempt to secure contracts in Saudi Arabia worth USD3.5 billion and contracts in Iraq worth USD730 million.

On Monday, litigation funder Innsworth and law firm Keystone said that they are analysing potential claims and are actively putting together a group of shareholders to launch action against Petrofac.

Ian Garrard, managing director of Innsworth, said the group is in a "pre-eminent position to assemble and fund a shareholder group action against Petrofac".

Innsworth, which helps fund lawsuits and then takes a portion of the damages if successful, is also behind a shareholder claim against car giant Volkswagen AG over the emissions scandal.

The allegations of bribery, corruption and money laundering at Petrofac relate to oil contractor and consultancy Unaoil.

Shares in Petrofac collapsed in 2017 when the Serious Fraud Office announced its investigation into the companies.

Chief Executive Ayman Asfari, a Tory party donor, and the then chief operating officer Marwan Chedid were both arrested and questioned under caution but later released without charge.

Petrofac's stock was again hit when Lufkin admitted charges at Westminster Magistrates' Court last week, tumbling by more than a quarter.

Innsworth, which is funded by Elliott, is engaging investors who held shares from 2010.

Petrofac said last week that no charges have been brought against any group company, current officers, employees or board members.

Rene Medori, chairman of Petrofac, said at the time: "The SFO has chosen to bring charges against a former employee of a subsidiary company.

"It has deliberately not chosen to charge any group company or any other officer or employee. In the absence of any charge or credible evidence, Petrofac intends as a matter of policy to stand by its employees.

"Petrofac has policies and procedures in place designed to ensure that we operate at the highest levels of compliance and ethics."

Petrofac shares were trading up 1.7% on Monday at 400.80 pence.

By Ravender Sembhy, Press Association City Editor

source: Press Association

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Petrofac Ltd 405.60 GBX 0.52 -
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