Saipem anti-corruption procedures

Saipem has been active for several years now in the fight against corruption. The Company’s Code of Ethics are adhered to by all Saipem personnel and expressly accepted by all vendors as part of the vetting process. Indeed, they expressly prohibit ‘corrupt practices, illegal favours, collusive behaviour, and requests, both direct and/or through third parties, for personal and career benefits for themselves or for others’.

Saipem is committed to observing the United Nations Convention against Corruption, the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and Transparency International’s Business Principles for Countering Bribery. In an effort to improve the reference framework of rules and procedures already in place in the area of anti-corruption, which are implemented by Saipem on an ongoing basis in order to ensure maximum compliance with applicable national and international codes of ethics and anti-corruption laws, on April 23, 2012, the Board of Directors of Saipem SpA approved the new ‘Anti-Corruption’ Management System Guideline’. As part of the ongoing development of the Saipem procedural corpus on the subject, this guideline has replaced the previous procedure ‘Anti-Corruption Compliance Guidelines’ issued in February 2010.

The new ‘Anti-Corruption’ MSG has been formally acknowledged by the Boards of Directors of all companies in the Saipem Group. With regard to associated companies, Saipem representatives on the respective Boards of Directors have formally announced the adoption by Saipem of the Anti-Corruption procedure, and have gone as far as they can in laying the groundwork for acceptance in their respective companies of the standards defined in the abovementioned MSG.

The main features of the Anti-Corruption MSG are:

  • reference to so-called ‘private corruption’, with explicit mention of the UK Bribery Act, where applicable;
  • explicit prohibition of ‘facilitation payments’;
  • the provision of a ‘Registry’ in which any ‘gifts, economic or other benefits offered or received by Saipem personnel’ are duly recorded;
  • a ban on political contributions, unless required under local law and only after following a specific authorisation procedure, which includes conducting a Due Diligence on the beneficiary;
  • explicit inclusion of ‘vendors’ among the parties required to comply with Saipem’s ethical standards and pre-qualification requirements, as defined in the MSG ‘Procurement’;
  • extension of the notion of ‘Covered Business Partners’ to any party that may have significant contact with a public official, including consultants (who will be subject to Due Diligence and specific anti-corruption clauses, declarations and guarantees);
  • a duty to report any requests for unlawful payments, gifts, personal benefits, meals or entertainment expenses, employment or other benefits made by a public official or a private person that are not considered reasonable and in good faith.

Saipem requires compliance with anti-corruption laws from all intermediaries, business partners and ‘Covered Business Partners’ who may have significant contact with public officials when conducting business on behalf of Saipem.

All Saipem staff members are responsible for compliance with anti-corruption legislation. All documents pertaining to this are easily accessible via the corporate intranet portal.
Any suspected or known violations of the anti-corruption laws or guidelines must be reported immediately. Disciplinary measures will be taken against anyone who violates Saipem’s anti-corruption rules, who does not attend the training programmes, who fails to report any violations of which they are aware, or who retaliate against anyone else who reports violations.

Saipem has also issued more specific anti-corruption regulatory instruments on various themes and areas that are particularly vulnerable to the risk of corruption. These internal procedures are subject to constant checks to ensure that they are updated where necessary. In particular, in addition to the Corporate Standards on ‘Intermediary Contracts’ and ‘Joint Venture Agreements - Prevention of illegal activities’ revised in 2012, a programme was launched in 2013 to check and update some additional ancillary procedures to the anti-corruption programme. Any updates deemed necessary will then be implemented during the course of 2014.

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