Algeria Jails Ex-Sonatrach Head for 15 Years for Graft

Former head of state energy giant Sonatrach Abdelmoumen Ould Kaddour. (Sonatrach)
Former head of state energy giant Sonatrach Abdelmoumen Ould Kaddour. (Sonatrach)
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Algeria Jails Ex-Sonatrach Head for 15 Years for Graft

Former head of state energy giant Sonatrach Abdelmoumen Ould Kaddour. (Sonatrach)
Former head of state energy giant Sonatrach Abdelmoumen Ould Kaddour. (Sonatrach)

An Algerian court on Tuesday handed a 15-year prison sentence to the former head of state energy giant Sonatrach in a corruption case.

Abdelmoumen Ould Kaddour had been on trial over the 2018 purchase of the Sicilian Augusta oil refinery.

According to Algerian media, the state oil and gas firm had paid ExxonMobil subsidiary Esso Italiana $720 million for the site and associated infrastructure, seen as overpriced for a refinery in operation since the 1950s.

The deal aimed at reducing the bill for importing refined petroleum materials from abroad. However, after sacking Ould Kaddour in 2019, the company borrowed $250 million from foreign banks to repair the refinery.

Upon its conclusion, Ould Kaddour hailed the “profitable project,” which he claimed would provide the public treasury with large sums of money to be spent on importing oil-derived products in a short period of time.

Ould Kaddour, accused of squandering public funds, abuse of office and conflict of interest, was “sentenced to 15 years in prison without parole,” his lawyer said.

The court also sentenced his wife to two years in prison and his son in absentia to ten years in prison and issued an international arrest warrant against him.

Sonatrach's former deputy chief Ahmed Mazighi, who oversaw the purchase, was jailed for seven years.

Another former Sonatrach official indicted in the case was jailed for three years and a fourth was released.

The indictment list also includes “concluding deals in violation of legislative and regulatory provisions to enable others to enjoy unjustified privileges, illegal use of public and private funds for the benefit of others, as well as abuse of power to benefit from exemptions and reductions in taxes and fees.”

The purchase price, initially set at 733 million dollars, had amounted to $2 billion to the actual session of the property.

Ould Kaddour affirmed that the refinery had indeed cost the initial amount and that the difference, namely more than 1.1 billion dollars, included customs bonds, maintenance and renovation costs, as well as environmental compliance.

It is noteworthy that the United Arab Emirates extradited Ould Kaddour in early August. It had arrested him in Dubai after a court in Algiers earlier issued an international arrest warrant against him.



Egypt Says GERD Lacks Legally Binding Agreement

This grab taken from video shows Grand Ethiopian Renaissance Dam in the Benishangul-Gumuz region, Ethiopia, Feb. 20, 2022. (AP Photo)
This grab taken from video shows Grand Ethiopian Renaissance Dam in the Benishangul-Gumuz region, Ethiopia, Feb. 20, 2022. (AP Photo)
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Egypt Says GERD Lacks Legally Binding Agreement

This grab taken from video shows Grand Ethiopian Renaissance Dam in the Benishangul-Gumuz region, Ethiopia, Feb. 20, 2022. (AP Photo)
This grab taken from video shows Grand Ethiopian Renaissance Dam in the Benishangul-Gumuz region, Ethiopia, Feb. 20, 2022. (AP Photo)

Egypt said Friday that Ethiopia has consistently lacked the political will to reach a binding agreement on its now-complete dam, an issue that involves Nile River water rights and the interests of Egypt and Sudan.

Ethiopia’s prime minister said Thursday that the country’s power-generating dam, known as the Grand Ethiopian Renaissance Dam (GERD), on the Nile is now complete and that the government is “preparing for its official inauguration” in September.

Egypt has long opposed the construction of the dam, because it would reduce the country's share of Nile River waters, which it almost entirely relies on for agriculture and to serve its more than 100 million people.

The more than the $4 billion dam on the Blue Nile near the Sudan border began producing power in 2022. It’s expected to eventually produce more than 6,000 megawatts of electricity — double Ethiopia’s current output.

Ethiopia and Egypt have spent years trying to reach an agreement over the dam, which Ethiopia began building in 2011.

Both countries reached no deal despite negotiations over 13 years, and it remains unclear how much water Ethiopia will release downstream in case of a drought.

Egyptian officials, in a statement, called the completion of the dam “unlawful” and said that it violates international law, reflecting “an Ethiopian approach driven by an ideology that seeks to impose water hegemony” instead of equal partnership.

“Egypt firmly rejects Ethiopia’s continued policy of imposing a fait accompli through unilateral actions concerning the Nile River, which is an international shared watercourse,” Egypt’s Ministry of Water Resources and Irrigation said in a statement Friday.

Ethiopian Prime Minister Abiy Ahmed, in his address to lawmakers Thursday, said that his country “remains committed to ensuring that our growth does not come at the expense of our Egyptian and Sudanese brothers and sisters.”

“We believe in shared progress, shared energy, and shared water,” he said. “Prosperity for one should mean prosperity for all.”

However, the Egyptian water ministry said Friday that Ethiopian statements calling for continued negotiations “are merely superficial attempts to improve its image on the international stage.”

“Ethiopia’s positions, marked by evasion and retreat while pursuing unilateralism, are in clear contradiction with its declared willingness to negotiate,” the statement read.

However, Egypt is addressing its water needs by expanding agricultural wastewater treatment and improving irrigation systems, according to the ministry, while also bolstering cooperation with Nile Basin countries through backing development and water-related projects.