Peru’s Attorney General’s (“AG’s”) Office recently announced a settlement for 480 million soles ($126 million) with AENZA, an engineering and construction services company based in Peru formerly known as Graña y Montero, in a case stemming from Brazil’s Operação Lava Jato (Operation Carwash) investigation, a long-running investigation of corruption of officials in Brazil.
According to the AG’s Office, AENZA engaged in corruption in connection with 16 infrastructure projects, including work on Peruvian highways, a gas pipeline, and a train system. AENZA had partnered with the Brazilian company Odebrecht SA, a company that previously resolved corruption charges with US, Brazilian, and Swiss authorities, on some of these projects. The AG’s Office also stated that AENZA participated in tenders for 48 additional projects in order to falsely simulate competition as part of an anti-competitive scheme known as the “Construction Club.” In settling the matter, AENZA agreed to pay the Peruvian government approximately $126 million in civil damages. AENZA further agreed to withdraw from pending arbitrations in which AENZA sought payment in connection with some of the projects that were part of the settlement. The Company also agreed not to initiate any new lawsuits or arbitrations in connection with the public works projects that were the subject of the settlement.