UNAOIL S.A.M.

Industry

Extractive Industries/Mining/Oil & Gas

Corporate Headquarters

Monaco

Summary of Allegations:

Nationality of Foreign Officials: Azerbaijan

Summary of Allegations:

Unaoil allegedly paid a key middleman in Azerbaijan to help win contracts for its clients.  

The alleged middleman, Reza Raein, close friend to the Azeri President and his family, allegedly received millions of dollars from Unaoil through multiple bank accounts.  In return, Raein leaked highly confidential informaiton from senior Azeri government officials to Unaoil, which was used by Unaoil's clients to win public tenders.

Approximate Alleged Payments to Foreign Officials: millions of dollars

Business Advantage Allegedly Obtained: award of public contracts for its clients

Nationality of Foreign Officials: Iran

Summary of Allegations:

Unaoil's Iranian network allegedly paid bribes to influence Iranian politicians and promote the Iranian businesses of Unaoil's clients.  In 2006, for example, Unaoil allegedly paid monthly payment of USD 10,000 to secure the support of managing director of a firm chaired by a high ranking Iranian official, partly owned by an Iranian government entity and overseen by a board with political influence.

In addition to paying bribes to influence the Iranian oil industry, Unaoil allegedly provided assistance to resolve client disputes in Iran by allegedly paying bribes to influential figures such as the head of the Iranian Police. 

Approximate Alleged Payments to Foreign Officials: Unspecified

Business Advantage Allegedly Obtained: award of public contracts for its clients

Nationality of Foreign Officials: Iraq

Summary of Allegations:

In 2003, upon the overthrow of Saddam Hussein, the post-occupation government started reconstructing the economy and reviving the oil industry. A part of the master plan was to sharply increase the domestic oil-producing capacity, which was assigned by the Ministry of Oil to the South Oil Company. The South Oil Company was in charge of multiple projects including offshore buoys and oil pipeline installation.

Unaoil Territory Manager for Iraq Ziad Akle and Stephen Whiteley bribed officials at the South Oil Company with more than $500,000 to secure buoys installation contracts for SBM Offshore.

Unaoil Country Manager for Iraq Basil Al Jarah and other co-conspirators bribed officials of the South Oil Company and the Ministry of Oil with US$6 million and secured contracts worth US$800 million for SBM Offshore and Leighton Offshore. These contracts brought Unaoil commission and a subcontract granted by Leighton Offshore.

Between 2004 and 2012, Unaoil, through third-party intermediaries, including Ahmed al-Jibouri, paid at least USD 25 million in bribes in Iraq to secure the support of key politicians and figures in Iraq.

Ahmed al-Jibouri, the owner of Armada Group and majority owner of the International Procurement and Contracting Group, allegedly interacted closely with top Iraqi officials on Unaoil's behalf and funneled payments to those officials. For example, Unaoil allegedly reached out to al-Jibouri and allegedly offered to pay him USD 600,000 to ensure that SBM Offshore is awarded a contract to supply four offshore oil rig buoys by Iraq's oil ministry in February 2010. In August 2010, Unaoil allegedly agreed to pay al-Jibouri USD 4.5 million to help secure a USD 750 million oil pipeline contract for the offshore arm of Leighton Holdings. Around the same time, Unaoil again allegedly promised USD 1 million to get ministry officials to favor Petrofac in tender against the competitor, Weatherford International.

Unaoil allegedly bribed the Education Minister Hussain al-Shahristani, former Deputy Prime Minister of Iraq, then Oil Minister Abdul Kareem Luaibi, the Director-General of the state entity South Oil Company, Dhia Jaffar al-Mousawi, and top oil official Oday al-Quraishi who oversaw Iraq's most important oil expansion project.  

The most senior Iraqi politician allegedly received multi-million dollar lump-sum bribes and other junior Iraqi politicians were allegedly paid a lesser amount. al-Quraish allegedly received a monthly kickback of USD 6000 along with additional large lump sum bribes.  In addition, Unaoil allegedly bribed senior employees of international oil companies contracted by Iraq to manage its oil fields.

Approximate Alleged Payments to Foreign Officials: USD 25 million

Business Advantage Allegedly Obtained: award of public contracts for its clients

Nationality of Foreign Officials: Kazakhstan

Summary of Allegations:

Unaoil allegedly paid bribes to influential figures in Kazakhstan, including senior Eni manager Diego Braghi and Kazakh senior official Serik Burkitbayev, to give its clients an advantage in public tenders. Italian company Eni and Kazakh official allegedly oversaw tenders in the giant Kashagan oilfield and elsewhere in Kazakhstan.

Approximate Alleged Payments to Foreign Officials: Unspecified

Business Advantage Allegedly Obtained: award of public contracts for its clients

Nationality of Foreign Officials: Kuwait

Summary of Allegations:

Unaoil allegedly had a powerful official who they called "the big cheese" to direct a contract to Unaoil's client in the Middle east.  Unaoil allegedly obtained USD 2.5 million from its client and transferred a portion of the money to "the big cheese" through a middleman.

Approximate Alleged Payments to Foreign Officials: portion of USD 2.5 million

Business Advantage Allegedly Obtained: award of public contracts for its clients

Nationality of Foreign Officials: Libya

Summary of Allegations:

From 2004 to 2011, Unaoil allegedly built its network of corrupt Libyan officials with significant influence over Libya's oil and gas agencies.  Among these Libyan officials allegedly included Mustafa Zarti, good friend of Ghadifi's son, confidant for the Goddafi regime, and board member of Libyan Foreign Investment Committee, controlling the Libyan Oil fund (USD 6 billion).  Unaoil allegedly paid Zarti millions of dollars in bribe in exchange for Zarti's promise to bring all Libya's oil and gas work to Unaoil.

Lindsey Mitchell, a former Unaoil manager, confirmed through the media that Mitchell paid bribes in 2009 to get business in Libya. Mitchell, with approval from Unaoil, allegedly paid an envelope stuffed thick with US dollars to a production manager for Waha, a subsidiary of Libya's state-owned oil company. In exchange, Unaoil had received more than 100 pages of internal Waha documents about a USD 45 million environmental contract to clean up oil-polluted rivers in the Libyan desert. The packet included several bids from Unaoil’s competitors and detailed information about how Waha would pick a winner.

Approximate Alleged Payments to Foreign Officials: millions of dollars in bribe

Business Advantage Allegedly Obtained: award of public contracts for its clients

Nationality of Foreign Officials: Syria

Summary of Allegations:

In 2008 and 2009, Unaoil allegedly promised to pay bribe of 2.75 million euros to a middleman close to the regime of Syrian president Bashar al-Assad.  In exchange, he allegedly helped Unaoil's client, Petrofac, win contracts from Assad regime petroleum companies.

Approximate Alleged Payments to Foreign Officials: 2.75 million euros

Business Advantage Allegedly Obtained: award of public contracts for its clients

Nationality of Foreign Officials: United Arab Emirates

Summary of Allegations:

Unaoil's network in the United Arab Emirates allegedly included public officials with ties to the Crown Prince of Abu Dhabi.  This public official allegedly had commercial dealings with the Ahsanis, family behind Unaoil, and, in exchange, provided his backing in the region.

In addition, Unaoil allegedly corrupted a senior official in a subsidiary of Abu Dhabi's National Oil company and the official allegedly rigged a tender panel for Unaoil's client.

Approximate Alleged Payments to Foreign Officials: Unspecified

Business Advantage Allegedly Obtained: award of public contracts for its clients

Enforcement Results

Agencies: Australia: Federal Police

Results:

Year Resolved:

Compliance Monitor:

Ongoing: Yes

Details:

The Australia Federal Police ("AFP") have reportedly launched an investigation into the Unaoil scandal. On 20 July 2016 media reported that the AFP allegedly flew into London to work closely with the UK Serious Fraud Office ("SFO"). 

Agencies: Iraq: Commission of Integrity

Results:

Year Resolved:

Compliance Monitor:

Ongoing: Yes

Details:

On 2 April 2016, Iraqi Prime Minister Haider al-Abadi directed the Integrity Commission to take legal measures and open immediate legal proceedings into allegations reported by the media.

Agencies: United Kingdom: Serious Fraud Office

Results:

Year Resolved:

Compliance Monitor:

Ongoing: Yes

Details:

In a statement released on 31 March 2016, authorities in Monaco confirmed that it has raided Unaoil's headquarters and homes of its directors in response to an urgent request for assistance from the SFO.  In addition, Unaoil executives have been interviewed over the course of two days, on 29 March 2016 and 30 March 2016.  

The Monacan authorities announced that they acted in response to an urgent request for assistance from the SFO in accordance with European convention on mutual assistance in criminal matters and the UN convention against transnational organized crime.  Furthermore, the information collected during the searches and interviews will be examined by the SFO as part of their investigation.

On 19 July 2016, SFO confirmed its criminal investigation into the activities of Unaoil, its officers, employees and agents in connection with alleged bribery, corruption and money laundering. Lindsey Mitchell was interviewed as part of the investigation. The investigation opened on 22 March 2016.

On 29 March 2016, Monaco's authorities conducted raids on Unaoil's offices and the residence of Unaoil chairman Ata Ahsani and his two sons and Unaoil executives Cyrus Ahsani and Saman Ahsani. The raid was conducted in response to the SFO's letter, dated 23 March 2016, requesting urgent assistance as the SFO feared destruction of evidence once allegations are published by Fairfax Media's on its investigative report on 30 March 2016. 

On 1 December 2016, Unaoil sought to quash evidence collected during the SFO's raids in Monaco. Unaoil argued that the SFO went on an "unlawful fishing expedition" and had failed to specify Monaco in its letter requesting assistance. Unaoil argued that under the conventions of mutual assistance, the SFO, a UK authority, should have applied the standards of its own territory to such raid but failed to do so. The SFO, however, countered that its letter of request was lawful and compliant with international cooperation statutes as there are reasonable grounds for suspecting that offence had been committed by Unaoil, noting that Unaoil has not challenged the legality of the search against Monaco authorities. The request was dismissed on 29 March 2017.

In March 2017, the SFO director David Green has stated that he would like to resolve the Unaoil investigation by the time he leaves the SFO in April 2018.

On 16 November 2017, SFO announced that it had charged Ziad Akle and Basil Al Jarah with conspiracy to make corrupt payments to secure the award of contracts in Iraq to Unaoil’s client SBM Offshore, between June 2005 and August 2011. They noted that they have issued an extradition request to Monaco for a third man, Saman Ahsani, on related charges. Akle and Al Jarah are due to appear before Westminster Magistrates’ Court 7 December.

SFO announced on 30 November 2017 that two more individuals were charged with conspiracy to make corrupt payments to secure the award of contracts in Iraq to SBM Offshore between June 2005 and August 2011: Paul Bond and Stephen Whiteley, who are former executives of SBM Offshore. The two are to appear before Westminster Magistrates’ Court the same day as Ziad Akle and Basil Al Jarah.

22 May 2018 - The SFO brought additional charges against Basil Al Jarah (Unaoil's Iraq partner) and Ziad Akle (Unaoil's territory manager for Iraq) relating to corrupt payments to secure the award of a contract worth USD733 million to Leighton Contractors Singapore PTE Ltd. for a project to build two oil pipelines in Iraq. 

Ziad Akle, Basil Al Jarah, Paul Bond and Stephen Whiteley will appear before Southwark Crown Court on 25 July 2018.

26 June 2018 – the SFO brought charges against Unaoil Monaco SAM and Unaoil Ltd, for corruption respectively to secure a US$733 million pipeline construction contract for Leighton Contractors Singapore PTE Ltd in southern Iraq, and contracts for SBM Offshore in Iraq.

On 21 December 2018, the SFO charged Stephen Whiteley with one count of conspiracy to make corrupt payments between 2009 and 2010 in Iraq related to the Unaoil probe.

On 15 July 2019, Basil Al Jarah pleaded guilty to conspiracy to give corrupt payments.

On 23 January 2020, Stephen Whitley, Paul Bond, and Ziyad Akle pleaded not guilty to the charge of conspiracy to give corrupt payments.

On 13 July 2020, a UK court convicted Ziad Akle and Stephen Whiteley respectively on two counts and one count of conspiracy to give corrupt payments.

In July 2020, a UK court sentenced Akle and Whitely respectively to a five-year and three-year imprisonment.

On 8 October 2020, a UK court sentenced Basil Al Jarah to 40-month imprisonment.

On 24 February 2021, a UK court convicted Paul Bond of two counts of conspiracy to give corrupt payments to secure oil contracts since 2003.

On 1 March 2021, Paul Bond received a sentence of three and half years’ imprisonment.

On 3 November 2021, Stephen Whiteley was ordered to pay back almost £100,000 in criminal gains.

On 10 December 2021, a UK Court of Appeal overturned the conviction for Akle on the grounds that the prosecution failed to turn over necessary documents to the defense.

On 9 February 2022, the attorney general for England and Wales, Suella Braverman, launched a review of the SFO over issues identified in a bribery case linked to oil-services firm Unaoil Group. David Calvert-Smith, a former director of public prosecutions and a High Court judge, was appointed to lead the independent review of the agency.

Agencies: United States: Department of Justice, United States: Federal Bureau of Investigation

Results:

Year Resolved:

Compliance Monitor:

Ongoing: Yes

Details:

The U.S. Department of Justice ("DOJ"), U.S. Federal Bureau of Investigation ("FBI") have reportedly launched an investigation into the Unaoil scandal. Lindsey Mitchell was interviewed as part of the investigation.

On 30 October 2019, according to the DOJ's unsealed document, Unaoil’s former CEO Cyrus Ahsani, COO Saman Ahsani, and business development director Steven Hunter pleaded guilty earlier this year, to one count of conspiracy to violate the FCPA for their roles in bribery schemes in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria.

ENTITIES / INDIVIDUALS INVOLVED
  • Unaoil S.A.M. ("Unaoil")
  • Hussain al-Shahristani
  • Abdul Kareem Luaibi
  • Dhia Jaffar al-Mousawi
  • Oday al-Quraishi
  • Mustafa Zarti
  • Ahmed al-Jibouri
  • Armada Group
  • Ziad Akle
  • Basil Al Jaraj
  • SBM Offshore
  • Saman Ahsani
  • Leighton Contractors Singapore PTE Ltd
  • Paul Bond
  • Stephen Whiteley
  • Cyrus Ahsani
  • Steven Hunter
Details Of How Conduct Was Discovered

Discovery Method: Media or Investigative Report

Details:

Investigative report by Fairfax Media and the Huffington Post revealed the allegations of bribery involving multinational corporations such as Rolls-Royce, Halliburton, Leighton Holdings, Samsung and Hyundai, centered around Unaoil.

Country:

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