Petrofac CEO hit with Italian insider trading charge

Troubled oil services company Petrofac has backed chief executive Ayman Asfari after he was fined by Italian regulators for alleged insider trading.

The Italian National Commission for Companies and the Stock Exchange (CONSOB) alleged that an executive of an Italian company passed inside information to Asfari and that the FTSE 250 CEO acted on the information to trade in the Italian company's shares.

Asfari, who has instructed his lawyers to appeal the decision saying he could "absolutely confirm that no communication ever took place as alleged and I was never in possession of inside information", was slapped with an administrative fine of €300,000, an order confiscating property with a value of €385,000 and been banned for 12 months from taking up any administrative, management or supervisory positions in any Italian listed companies.

Petrofac chairman Rijnhard van Tets said: "The board fully supports Ayman in his defence against this decision, the steps he is taking to prove that in no way did he act improperly, and his leadership of the company at this difficult time."

Petrofac has been undergoing a criminal investigation by the UK's Serious Fraud Office since May.

Asfari and chief operating officer Marwan Chedid have both been questioned under caution by the SFO, which has said it "is investigating the activities of Petrofac Plc, its subsidiaries, and their officers, employees and agents for suspected bribery, corruption and money laundering" in connection to relationships with Monaco-based consultancy firm Unaoil.