Algerian oil firm chief in fraud probe: reports

(ALGIERS) - The head of Algeria's national oil corporation Sonatrach has been suspended from his job and ordered to appear before investigators probing corruption, news reports said Thursday.

Officials at Algeria's biggest company were unavailable for comment but a source at the firm who asked not to be named said Mohamed Meziane had been replaced in his job since Wednesday by vice-president Abdelhafid Feghouli.

An examining magistrate has ordered Meziane as well as another company vice president and five executives to appear before him concerning allegations of corruption in company tenders for consultancy and security contracts, the El Watan and El Khabar newspapers reported.

Two other Sonatrach vice presidents, the former president of a bank and his son, as well as two children of Meziane and a private businessman have already been detained as part of the probe, El Watan said.

Meziane was appointed in September 2003 to head Algeria's biggest firm which employs 125,000 people and made 9.2 billion dollars (6.3 billion euros) profit in 2008 for an annual turnover of 80.8 billion dollars, according to its last financial report.

The company accounts for 98 percent of the north African country's foreign exchange earnings.

Numerous foreign companies operate in Algeria in partnership with Sonatrach, including Total and GDF (France), Repsol (Spain), Rosneft (Russia), ENI (Italy), BP (Britain), Statoil Hydro (Norway), Anadarko (US) and CNPC (China).

A multitude of service sector companies from all over the world have contracts with the Algerian group.

"The change of managing director will have no effect on contracts reached with our company," said an official from one Western oil firm on condition of anonymity.

In March 2009, Energy Minister Chakib Khelil announced that Sonatrach will invest 63 million dollars in the coming five years to expand its capacity in the exporting of petrol and gas.