Aenza, the Peruvian largest construction company listed in the Lima Stock Exchange, with regional presence and the only Latam construction company listed in the NYSE, has closed a Plea Agreement with the Peruvian authorities after more than two years of process. This is the second Plea Agreement closed by a company in Peru (the first was Odebrecht) and the first of a Peruvian company.
AENZA will pay to the Republic of Peru a compensation of PEN 480 million.
As part of the collaboration and benefits agreement, AENZA also withdrew two arbitration and other claims which, added to the withdrawal of the ICSID arbitration for Gasoducto Sur Peruano, total PEN 720million.
The Agreement establishes that Graña y Montero was improperly and illegally used by former officers to participate in 5 corrupted projects executed with Odebrecht and others of the so called “Construction Club”.
In December 2018, AENZA initiated the process of collaboration and one year later closed a pre-agreement with the Attorney General’s Office and the Prosecutor’s Office, which now materializes in a Plea Agreement (Collaboration Agreement Act), which is subject to judicial homologation, and whose specific terms and conditions are subject to reserve.
Indeed, after 29 months of work, the Ad Hoc Public Prosecutor’s Office for the Odebrecht case and the Special Prosecutors’ Team finally closed the AENZA Plea Agreement, setting the amount of civil reparations to the Republic of Peru at around S/480 million, to be paid over a period of 12 years and guaranteed by a guaranteed trust, a first rank mortgage and a reserve account for an amount equivalent to the installment to be paid in the following year.
One of the most relevant aspects is that the closing of this agreement will allow Aenza to finish all the criminal proceedings in which it is involved and to focus on its business and new projects.
“The Plea Agreement is a milestone in the history of our country given that it tackles the largest corruption scandal in Republican history. This is the first Plea Agreement signed by a Peruvian company. It has been a tough process, in which we have had full support of the new administration of the company, both Board of Directors and CEO”, stated Juan Luis Hernández.
“Our legal team worked for 29 months designing the legal strategy that contemplated criminal and corporate aspects, running thorough internal investigations that ended with this Plea Agreement, that will enable the company the to continue its businesses while paying the compensation agreed. Therefore, we are pleased with this unprecedent outcome”. said Gonzalo del Río.