Corruption may have cost Sonatrach $1.22 billion

Former Sonatrach CEO Mohamed Meziene is under investigation for corruption in Algeria.

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Sources close to the corruption investigation of the Algerian state-owned energy giant Sonatrach have said that the irregularities could have cost the company US$1.22 billion over the last six years.

The Algerian newspaper El-Khabar reported the revelations after Algerian President Abdelaziz Bouteflika ordered Sonatrach to freeze all contracts the company awarded after December 21 of last year.

The freeze effects around 275 contracts that were either signed or awarded between December 21 2009 and February 5 2010. The contracts that were not effected were any deemed to hurt Sonatrach financially or effect its position on the international market.

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The newspaper also reported that sources close to the investigation said that the internal document used by Sonatrach since 2004 to organise the awarding of its contracts, the “R15”, was not being implemented properly.