popular articles

Favoritism at EDF : Henri Proglio and twelve others go on trial in Paris

The Chairman of EDF and twelve other people are on trial for favoritism concerning consultancy contracts, highlighting questionable practices from 2010 to 2016.

Please share:

The favoritism trial involving EDF and its former CEO Henri Proglio begins in Paris, attracting considerable media attention. The case concerns consultancy contracts awarded without competition between 2010 and 2016, for a total amount of around 22 million euros. The PNF (Parquet national financier) has identified 44 contentious contracts, signed by Henri Proglio or other company executives, involving influential personalities and renowned consultants. The trial, which is expected to last two weeks, will see Henri Proglio, former head of EDF from 2009 to 2014, Alain Tchernonog, EDF’s former General Secretary, and eleven consultants and executives appear on charges of favoritism and receiving favoritism. The first day of the trial is devoted to procedural debates, with Henri Proglio expected to take the stand on the second day to be questioned about contracting practices during his term of office. This case also echoes that brought against the Bourbon group and its executives.

Details of the charges

The PNF accuses Henri Proglio and the other defendants of awarding consultancy contracts without competitive bidding, in violation of public procurement rules. The contracts covered communications consulting, strategic consulting, risk management, intelligence and lobbying. Amounts ranged from 40,000 to four million euros, and beneficiaries included communicators, former company directors, politicians, magistrates, lawyers and journalists. An internal memo from 2010, nicknamed “Tchernonog” after EDF’s former General Secretary, established a specific procedure for selecting consultants, based solely on their references and reputation, in violation of the principles of equal treatment, transparency and free access to public contracts. According to the PNF, this procedure made it possible to circumvent the competitive bidding rules normally required for these contracts.

Positions of the parties

Henri Proglio’s lawyers, Jean-Pierre Mignard and Pierre-Emmanuel Blard, plead their client’s innocence, arguing that most of the facts are time-barred and that there was no hidden agenda. They point out that the procedures were transparent and that Proglio derived no personal gain from these contracts.

“We’re going to ask for the case to be dismissed, firstly because most of the facts are time-barred and secondly because, for there to be favoritism, there has to be a hidden agenda. However, everything has been very public, and there has been absolutely no desire to conceal anything.

The PNF, however, maintains that the contracts were awarded without respecting the principles of transparency and competition, an essential element in public procurement. The consultants involved, some of whom, like Stéphane Fouks of Havas and Anne Méaux of Image 7, have already been fined through plea bargaining. Others, such as Jean-Marie Messier, former CEO of Vivendi, and Loïk Le Floch-Prigent, former head of GDF and SNCF, deny having committed an offence, citing the confidentiality of the assignments and the scarcity of the skills required as justifications for not inviting tenders.

Political reactions and Euronext strategies

In response, France’s Minister of the Economy, Bruno Le Maire, has proposed the establishment of a UMC in the European Union to meet the financing needs of companies like TotalEnergies, which is considering a listing on the New York Stock Exchange due to undervaluation in Europe. Emmanuel Macron also supported this initiative, which aims to create a truly European internal market capable of competing with the world’s major financial centers. Stéphane Boujnah, Chairman of Euronext, said that despite efforts to boost the liquidity of European markets, it remains difficult to change the preferences of American investors, who value financial performance more than ESG (environmental, social and governance) criteria in comparison with their European counterparts. Euronext is working on technical solutions to keep companies attached to European markets while meeting their valuation needs.

Analysis of quotation prospects

The EDF favoritism affair raises questions about the governance of public companies and the transparency of procurement procedures. TotalEnergies is considering a listing in New York, highlighting the challenges of market valuation and attractiveness for European companies. The trial of Henri Proglio and the other protagonists highlights the issues of governance and transparency in the management of public companies. How EDF and its management handle this crisis could influence contract management practices and public perception of energy companies in Europe. Setting up a UMC could improve the competitiveness of European companies, but it won’t necessarily solve the valuation problems perceived by international investors.
The favoritism trial involving EDF and its former CEO Henri Proglio highlights the governance and transparency challenges facing major public companies. The outcome of this trial could have a significant impact on contract management practices and the public perception of energy companies in Europe, while underlining the need for a capital markets union to strengthen the competitiveness of European companies on the world stage.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Nigeria aims to increase its electricity production capacity by 4,000 MW by 2026 to meet the growing demand of the industrial sector, in a context of reforms and partnerships with international players.
EDF’s outgoing CEO, Luc Rémont, claims French electricity will be more competitive than that of the United States, despite ongoing criticisms from industrialists about high tariffs.
EDF’s outgoing CEO, Luc Rémont, claims French electricity will be more competitive than that of the United States, despite ongoing criticisms from industrialists about high tariffs.
Donald Trump's aggressive trade policies and regulatory uncertainty in the United States are slowing investments in wind, solar, and energy storage, pushing the sector into a period of caution and market volatility.
Donald Trump's aggressive trade policies and regulatory uncertainty in the United States are slowing investments in wind, solar, and energy storage, pushing the sector into a period of caution and market volatility.
The French government activates five funding mechanisms to support industrial decarbonisation projects through the France 2030 plan, targeting major sites, SMEs and high-emission industrial zones.
The French government activates five funding mechanisms to support industrial decarbonisation projects through the France 2030 plan, targeting major sites, SMEs and high-emission industrial zones.
Paris releases a new €400mn funding package to support industrial projects aimed at reducing emissions under the France 2030 programme.
The massive withdrawal of American financial support and the reduction of European aid could jeopardize energy projects in Africa, profoundly altering their financing structure and the continent's commitments.
The massive withdrawal of American financial support and the reduction of European aid could jeopardize energy projects in Africa, profoundly altering their financing structure and the continent's commitments.
The Vietnamese government has raised its renewable energy targets in a new version of its national energy plan, responding to continued growth in electricity demand.
The Vietnamese government has raised its renewable energy targets in a new version of its national energy plan, responding to continued growth in electricity demand.
A massive outage plunged Puerto Rico into darkness on Wednesday, leaving approximately 1.1 million households without electricity after an unexpected shutdown of all its power plants.
A massive outage plunged Puerto Rico into darkness on Wednesday, leaving approximately 1.1 million households without electricity after an unexpected shutdown of all its power plants.
The Czech Republic has ended its dependency on Russian oil after more than six decades, a major shift made in response to Russia's invasion of Ukraine.
The European power purchase agreement (PPA) market for renewables reached 19 GW of new capacity in 2024, with growing momentum for hybrid contracts including storage.
The European power purchase agreement (PPA) market for renewables reached 19 GW of new capacity in 2024, with growing momentum for hybrid contracts including storage.
Industry Minister Marc Ferracci criticised the Rassemblement National's stance on energy, accusing it of hindering planned investments in renewables in favour of fossil fuel imports.
Industry Minister Marc Ferracci criticised the Rassemblement National's stance on energy, accusing it of hindering planned investments in renewables in favour of fossil fuel imports.
Bill 69 sparks protests in Saint-Jean-sur-Richelieu, where several organisations denounce a risk of privatising Quebec’s electricity sector.
Bill 69 sparks protests in Saint-Jean-sur-Richelieu, where several organisations denounce a risk of privatising Quebec’s electricity sector.
Wind and solar energy accounted for nearly one-fifth of Türkiye’s electricity generation in 2024, according to an analysis by think tank Ember, driven by a strong increase in installed capacity.
The Acerez consortium has signed a 35-year agreement to build and operate over 240 km of high-voltage lines in Australia, marking the country's first public-private partnership in the sector.
The Acerez consortium has signed a 35-year agreement to build and operate over 240 km of high-voltage lines in Australia, marking the country's first public-private partnership in the sector.
France’s multi-year energy strategy shifts focus away from photovoltaics toward flexibility measures, including battery storage, to address growing imbalances in the electricity market.
France’s multi-year energy strategy shifts focus away from photovoltaics toward flexibility measures, including battery storage, to address growing imbalances in the electricity market.
France’s energy regulator unveils its first observatory dedicated to renewable electricity purchase agreements, highlighting a recent but still marginal growth compared to State-backed mechanisms.
France’s energy regulator unveils its first observatory dedicated to renewable electricity purchase agreements, highlighting a recent but still marginal growth compared to State-backed mechanisms.
The French government plans to adopt within two weeks a decree outlining the decade’s energy objectives, restarting nuclear power and preparing for a parliamentary debate on energy sovereignty.
The expansion of solar and wind capacity is multiplying hours of negative prices on European electricity markets, weakening the sector's economic balance while reshaping export and storage dynamics.
The expansion of solar and wind capacity is multiplying hours of negative prices on European electricity markets, weakening the sector's economic balance while reshaping export and storage dynamics.
The National Assembly will discuss national energy security on 28 April at the government’s request, in connection with the upcoming Multiannual Energy Programming covering the 2025-2035 period.
The National Assembly will discuss national energy security on 28 April at the government’s request, in connection with the upcoming Multiannual Energy Programming covering the 2025-2035 period.
Despite a predominantly decarbonised electricity production, demand in Europe remains subdued, hindered by uncompetitive prices and limited industrial usage.
Despite a predominantly decarbonised electricity production, demand in Europe remains subdued, hindered by uncompetitive prices and limited industrial usage.
The global electricity mix shifted in 2024 with 40.9% of production from low-carbon sources, according to Ember, driven by historic solar power growth.
Facing recurring shortages, Tajikistan tightens energy laws by introducing prison sentences of up to ten years for electricity fraud to protect its ageing hydropower network.
Facing recurring shortages, Tajikistan tightens energy laws by introducing prison sentences of up to ten years for electricity fraud to protect its ageing hydropower network.
The French government finalises its new energy roadmap through 2035, balancing nuclear revival and selective expansion of renewables amid political tensions.
The French government finalises its new energy roadmap through 2035, balancing nuclear revival and selective expansion of renewables amid political tensions.
Burundi’s main opposition coalition warns of direct consequences from the energy crisis on the organisation of the June legislative elections.
Burundi’s main opposition coalition warns of direct consequences from the energy crisis on the organisation of the June legislative elections.

Advertising