Bribery Scandal

Mexico’s Pemex in Talks With Vitol, Eyes Resuming Business After Bribery Scandal

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MEXICO CITY (Daily News) – Petroleos Mexicanos (Pemex) has made progress in talks with international vitality dealer Vitol about resuming buying and selling ties that broke down final yr throughout a bribery scandal, and the businesses should iron out some points similar to compensation for damages Mexico’s state oil firm suffered, two sources at Pemex mentioned.

The sources at Pemex didn’t supply particulars on how the damages from the scandal can be calculated or give an estimate. Vitol and Pemex declined to remark.

In March 2021, Pemex mentioned it had suspended its industrial relationship with Vitol after the oil dealer admitted to paying bribes to retain enterprise in Mexico.

On the time, Pemex additionally mentioned Vitol had provided compensation for damages however insisted the dealer reveal the names of the Mexican officers that allegedly obtained the bribes and the particular contacts concerned.

In Could Pemex mentioned in an announcement that Vitol had beforehand provided $22 million in compensation, which additionally included “work” on the Pajaritos ethanol terminal, with out giving additional particulars. Pemex mentioned the supply was not ok because it didn’t embrace the identities of these liable for the corruption.

Later that month, Vitol did reveal the names and since then conversations have been progressing in the direction of resuming commerce between the 2 corporations, the 2 Pemex sources mentioned.

President Andres Manuel Lopez Obrador has mentioned the officers that obtained the bribes have been a part of the earlier authorities.

Each sources mentioned no concrete selections have been made relating to resumption of enterprise and that attorneys at Pemex are nonetheless analyzing some matters.

The sources didn’t present a timeline on how lengthy the conversations may nonetheless final. The progress in talks has not been beforehand reported.

“We’re resuming conversations however we nonetheless have not agreed on something (relating to the acquisition of product). There are a number of points nonetheless within the authorized division,” the supply mentioned, including that one in every of them is compensation for damages.

One other senior supply at Pemex confirmed that talks have been occurring however that nothing had been closed neither on new contracts or older ones.

“It’ll now rely upon whether or not the cost for damages are sufficient,” the supply mentioned, with out specifying how a lot it must be.

Vitol’s subsidiary in america agreed in late 2020 to pay $164 million as a part of a deferred prosecution settlement following a U.S. investigation into corruption in Brazil, Ecuador and Mexico. Vitol had admitted to paying greater than $2 million in bribes between the three nations.

Reuters reported in 2021 that Pemex had informed Vitol it had canceled contracts for the availability of butane gasoline, naphtha and propane gasoline.

 

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