By Eric Sylvers 

MILAN--Italian prosecutors asked a judge to indict the former chief executive of Eni SpA on corruption charges, alleging he was involved in a kickback scheme that helped win the giant energy company contracts in Algeria.

Paolo Scaroni, 68 years old, who has been deputy chairman of Rothschild Group since finishing a nine-year stint at the helm of Eni last year, is accused of being involved in funneling money to Algerian officials who awarded the contracts. He was also accused of tax fraud.

Through a spokesman on Thursday, Mr. Scaroni denied any wrongdoing.

In addition to Mr. Scaroni, seven others are named in the requested indictment, including top executives at Saipem--an oil-services company 43% owned by Eni that won the contracts in Algeria--and two people alleged to have provided the link between Saipem and the Algerian officials. The prosecutors also asked for indictments of Eni, Italy's largest company by market value, and Saipem.

Eni and Saipem declined to comment. In the past, Eni has maintained that it has no control over Saipem, despite its large stake.

An internal Saipem investigation in 2013 carried out by external consultants found no evidence that illegal payments had been made to Algerian officials to win the contracts. Saipem at the time said it forwarded the findings to the Milan prosecutors who already had begun their own investigation.

Milan-based Saipem has been dogged by the Algerian corruption allegations over the past several years that together with disappointing financial results and two profit warnings have sent the stock plunging. Its shares, down about 50% in the past 12 months, added 2.1% Thursday.

Italian prosecutors couldn't be reached by telephone and didn't respond to emails seeking comment.

At a preliminary hearing, prosecutors will present their findings to a judge who will then decide whether to indict Mr. Scaroni and the others or to close the case.

Write to Eric Sylvers at eric.sylvers@wsj.com

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