Colombia: Odebrecht scandal delays hundreds of projects: Union

The Colombian Society of Engineers (SCI) has put forth an analysis on the outlook of hundreds of public works whose contracts started in 2016. The society alleges that the decision to eliminate advance payments has driven small and medium businesses in the sector to “drop out of the range for contracts, or worse yet, to engage in some type of corrupt practices” said SCI president Argenilo Durán.

“We find that regional contracts present two critical components: first, that they are being managed through extortion, that is, companies are being asked for payments in order to be allowed to participate in contract bids. Second, that small and medium businesses – which must, by law, have some presence in these contests – are turning to illegal funds, which are later laundered, because they lack the necessary cash flow”, added the SCI’s new president.

Likewise, Mr. Durán commented on the backlash suffered due to the scandal caused by Brazilian multinational Odebrecht’s widespread bribery network. “ It has caused a domino effect in terms of delays in the financial closure of al 4G projects, which is something we have to overcome. These are works that are important for the country’s competitiveness, we cannot satanize these initiatives in general.”

Full Content: Portafolio

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