Odebrecht gets 4-year disqualification in Mexico

MEXICO CITY, December 12, 2017 – Brazilian construction conglomerate Odebrecht will not be eligible to receive federal contracts for four years, Mexico’s Secretariat of Public Administration announced on Monday through an entry in the country’s Official Gazette.

As the anti-corruption watchdog of the federal government, the secretariat has levied the action against Odebrecht due to MXN 119 million (USD 6.2 million) in damages state-owned Pemex sustained as a result of the Brazilian firm’s breach of a refurbishment contract for the Tula refinery.

The disqualification will not affect Odebrecht contracts that are currently in force.

The construction conglomerate is currently under investigation in several countries on charges of corruption. The US Department of Justice alleges that the company paid around USD 10.5 billion in bribes in Mexico between 2010 and 2014.

Former Pemex CEO Emilio Lozoya Austin has been implicated in the crimes, but maintains his innocence. So far, no one in Mexico has been charged in connection with the illegal payments.

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