The trial of Henri Proglio, former CEO of EDF from 2009 to 2014, has shed light on controversial recruitment practices at the energy giant. Accused of favoritism, Mr. Proglio allegedly initiated overriding and illegal recruitment procedures to hire consultants outside the rules of competitive bidding. The National Financial Prosecutor’s Office (PNF) has requested a suspended prison sentence of two years and a fine of 200,000 euros.
According to the PNF, these practices were “le fait du prince”, in the words of representative Sébastien de la Touanne. EDF, as a legal entity, also faces a fine of one million euros. A conviction which, according to the defense, could affect the Group’s ability to bid for certain international contracts.
Litigious contracts worth 36 million euros
The lawsuit concerns 44 contentious contracts worth a total of €36 million, awarded to consultants for lobbying, strategic consulting and risk management assignments. The consultants, who included communicators, former company directors, judges, lawyers and journalists, were paid between 40,000 and four million euros each. Only those who received more than 400,000 euros will be prosecuted for handling favoritism.
Henri Proglio pleaded for the efficiency of these recruitments, denying any intention to circumvent the rules. Most of the 11 consultants sued, including nine individuals and two companies, claimed they were unaware they were being solicited outside the rules.
Recruitment without competition
The prosecutor insisted that no competitive bidding procedure, even a simplified one, had been put in place. Many consultants were recruited because of their personal relationship with Mr. Proglio. The case of physicist and former minister Claude Allègre, who was paid 336,000 euros for pro-nuclear lobbying, was cited by the public prosecutor as an example of the lack of competitive bidding.
The consultants, such as former journalists Jean de Belot and Laïd Sammari, and criminologist Alain Bauer, face sentences ranging from six to 18 months’ suspended imprisonment and fines of between 121,000 and one million euros. Only Loïk Le Floch-Prigent, former director of Gaz de France and SNCF, faces a one-year prison sentence due to his criminal record.
Decision expected in several months
At the hearing, each consultant defended his selection, extolling his specialist skills. The prosecutor ironized this self-proclaimed specialization, pointing out that there had been no competition. The final defense arguments, including that of Mr. Proglio, are scheduled for Friday. The court’s decision will be reserved for several months.
The outcome of this trial will be decisive for future business at EDF, and could have a significant impact on recruitment practices in the public sector.
