MILAN (Reuters) - Saipem informs in a note that the Brazilian administrative authority Controladoria-Geral da União (Cgu) has issued against local subsidiaries Saipem SA and Saipem do Brasil a measure of temporary suspension for two years to enter into contracts with the public administration of the Pese under a proceeding related to facts dating back to 2011 and already communicated to the market in 2019.

The sanction has no impact on projects already started by Saipem in Brazil, as it relates exclusively to potential new contracts, and concerns only relations with the public administration, the note says.

The two companies still intend to appeal.

Full release

(Claudia Cristoferi, editing Sabina Suzzi)