Leighton may be Expelled from Iraq

Iraq has threatened to expel Leighton Holdings from the country’s lucrative oil and gas fields, following the company's announcement on Monday of an investigation into possible corruption.

The deputy head of the Iraqi Oil Ministry’s petroleum contracts and licensing directorate, Sabah Al-Saidi, told The Australian Financial Review he was shocked by claims that Leighton Holdings subsidiary Leighton Offshore might have sought to influence contract awards through improper payments.

“We have worked very hard to ­create a transparent oil and gas industry and these allegations are already proving very damaging to our international reputation,” he said.

“I do not want to pre-judge what this investigation may find but certainly we expect international companies like Leighton to perform to best international standard ... Anything less than that does not have a place within our industry here in Iraq.”

Mr Al-Saidi declined to say if any investigation into Iraq’s Oil Ministry staff and practices was being conducted as a result of the Leighton probe.

Meanwhile, Deutsche Bank downgrades Leighton Holdings to a ‘hold’ recommendation.

(Source: Australian Financial Review)

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2 Responses to Leighton may be Expelled from Iraq

  1. Notice: Only variables should be assigned by reference in /srv/users/ibn/apps/ibn/public/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
    16th February 2012 at 12:32 #

    Are you shocked? Why??? If somebody come and say that his Company took a Contract without corruption in Iraq than I will be shocked!! This is the Iraqi way and all the personnel working in authorities, like SOC, demanding at least % 10 commission from the contract amounts. Otherwise they don't even care about what is your Company capable of or what is your price.

    Mr. Sabah Al Saidi, please talk and act straight and parallel. everybody know the facts...

  2. Notice: Only variables should be assigned by reference in /srv/users/ibn/apps/ibn/public/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
    17th February 2012 at 09:48 #

    Compnaies like Leighton shouldnot go in this direction, even if grounds are ideal, they are promoting corruption and un ethical. Cant always blame the Iraqi counter parts