Petrofac CEO handed supportive judgement over Italian insider trading charge

Petrofac's chief executive Ayman Asfari has been cleared by the UK High Court of insider trading in Italy, with the Italian authorities found to have not followed due process in allowing him to defend himself.

The High Court handed down a judgment that Asfari was not properly notified of charges and given a chance to defend himself in connection with the sanctions made against him last August by the Italian National Commission for Companies and the Stock Exchange (CONSOB) last year.

Having not served process properly, the High Court has therefore ordered that the charge against him should be set aside and annulled.

CONSOB, which in August slapped Asfari with an administrative fine of €300,000, a €385,000 property confiscation order and a 12-month ban from taking up any management positions in any Italian listed companies, will have seven days to apply to set aside or vary the judgment once the UK High Court order is served. Mr Asfari continues to refute all of the charges made against him and is engaged in appeal proceedings in Italy.

CONSOB alleged that an executive of an Italian company passed inside information to Asfari and that he acted on the information to trade in the Italian company's shares. Asfari appealed the decision saying he could "absolutely confirm that no communication ever took place as alleged and I was never in possession of inside information".

On Wednesday he said: "I welcome today's ruling from the High Court which confirms, as I have stated from the outset, that I was never served the CONSOB notice of charges against me, and consequently I was never given the chance to defend myself.

"I have always emphatically maintained that I have done nothing wrong. Whilst I am pleased with today's decision by the UK courts, I have also commenced an appeal process in the Italian courts on both the merits and the procedure of the case, in which I have set out my defence and the evidence that supports it, and will continue to pursue vigorously the fair and swift resolution of this issue in full."

Petrofac chairman Rijnhard van Tets said: "The board has supported Ayman in his defence from the outset and this decision confirms his assertion that due process was not followed. We hope that a swift conclusion will now be reached to prove that in no way did Ayman act improperly."