The firm Graña y Montero, Peru’s largest construction company, is being investigated for its alleged participation in a bribery case by its Brazilian partner Odebrecht, prosecutors said.
In an interview on Sunday night with local channel, prosecutor Hamilton Castro said his office is investigating Graña y Montero and other local partners of Odebrecht, a company that has admitted bribes to win public works in Peru.
“Yes, there is an investigation against the so-called consortium companies,” said Castro. When asked if the investigation included Graña y Montero, the prosecutor replied: “Effectively and others, against Graña y Montero and others,” he noted.
At 10.05 local time (1505 GMT), the role of Graña y Montero – which has collapsed since the Odebrecht scandal broke at the end of last year – fell 5% to 2.28 soles. Last week, Congress passed a bill to expand a series of new financial restrictions on Graña and other local Odebrecht partners.
Graña y Montero did not respond immediately to a request for comments. The company has repeatedly denied any wrongdoing and said a recent internal investigation it commissioned did not yield any evidence that its employees had participated in the bribery of Odebrecht.
Castro said former Odebrecht executive Jorge Barata, who became a collaborator with the prosecutor’s office, said that the companies with which Odebrecht had partnered in two highway projects knew and participated in the bribes of former President Alejandro Toledo to secure the contracts.
“That statement must be corroborated,” said Castro, who did not provide additional details about Graña and Montero. Toledo has also denied the accusations.