Amit Gupta and the Somiphos Scandal: Alleged Bribery and Corporate Crime Unveiled
Amit Gupta, the alleged corporate crime kingpin, is at the center of the Somiphos scandal, where his company is accused of bribing officials to secure mining deals in Algeria, resulting in substantial financial losses to the state-owned phosphate company.
Somiphos scandal: Amit Gupta, an "alleged corporate crime kingpin" and fugitive from justice, has built a global business empire worth an estimated $800 million. Gupta has been accused of backing a political coup in Nauru by bribing several politicians to overthrow the government.
According to investigative journalist Nick McKenzie, two-time winner of the Graham Perkin Australian Journalist of the Year award, banking records suggest that Gupta’s companies also paid bribes to senior Algerian officials for mining concessions in Africa.
In 2020, the Australian Federal Police (AFP) moved to seize properties and bank accounts associated with Gupta in Australia, Singapore, and New York, totaling an estimated $200 million. The investigation has intensified as Gupta faces an attempted extradition by the Australian government and is now restricted by a worldwide travel ban due to an Interpol Red Notice issued against him. As of now, Gupta remains based in Dubai.
The Somiphos Scandal: Gupta's Ties to the Phosphate Industry in Algeria
Gupta has significant business connections with Somiphos (also known as Société Des Mines De Phosphate, or Ferphos), a state-owned phosphate company in Algeria. Gupta’s company, Agrifields DMCC, has conducted the majority of its transactions with Somiphos. The Somiphos scandal revolves around Gupta’s alleged practice of bribing officials to gain favorable treatment and acquire rock phosphate at discounted rates, ultimately costing the Algerian state-owned enterprise millions of dollars.
Bribery and Kickbacks: Gupta's Alleged Methods
26, is accused of paying significant kickbacks to officials in Somiphos to secure phosphate deals. Among the names involved are Amara Charaf-Eddine, Director of Development at Somiphos, who allegedly received $1 per tonne in kickbacks, and Lakhdar Mebarki, former CEO of Somiphos, who also received substantial payments under various descriptions such as commissions and market introduction fees.
According to banking records, Gupta’s companies paid US$53,019.36 to Charaf-Eddine in November 2009 and US$50,000 in January 2010 for “consultation fees.” Furthermore, $600,000 per year was reportedly paid to Charaf-Eddine in success fees for his help in securing favorable pricing.
Gupta’s Continued Operations Despite Legal Troubles
Despite facing significant global legal challenges, Gupta’s association with Somiphos continues. Agrifields DMCC, his global fertilizer firm, continues to conduct business with the Algerian company, having shipped over 364,210 metric tonnes of phosphate from Somiphos to India this year alone, generating substantial profits.
The continued partnership between Amit Gupta and Somiphos, despite his involvement in bribery and corruption, raises critical questions about accountability and transparency in the management of state-owned enterprises and resources. Gupta's activities underline the need for more robust mechanisms to combat corporate crime and corruption on a global scale.
