More fraudulent contracts uncovered for Mexicos Pemex
Government audits on Mexicos petroleum giant Pemex have turned up more fraudulent contracts. According to a Reuters report, Pemex paid $9 million to tow an oil rig from the United Arab Emirates to the Gulf of Mexico in 2011. A government audit unveiled major problems with this contract: the rig didnt have the correct equipment for the stated assignment and the rig was already in the Gulf of Mexico, which means that the contract was fabricated. SEE ALSO: Coming in from Mexico? You might be an unwitting smuggler After discovering the problems with this Pemex contract, the auditors notified the company so that it could discipline the employees that were in charge of the contract. Pemex, however, did nothing. This isnt the first time that Pemex hasnt taken advice from auditors, however. Reuters investigated Pemex contracts signed between 2003 and 2012, more than 100 of which had problems identified by the Federal Audit Office. In total, these shaky contracts were worth $11.7 billion, or about 8 percent of Pemex contracts registered during that time frame. Government auditors have issued 274 strong recommendations that Pemex make efforts to remedy its numerous contract irregularities. Out of these 274 recommendations, Pemex only took action in three of the cases. Just a handful of employees were suspended. In Mexico, no one gets punished, Arturo Gonzalez de Aragon, former head of the Federal Audit Office, told Reuters. If you dont punish anyone, impunity becomes a perverse inventive for corruption. To add upon Pemexs corruption, one of the contractors who wasnt appropriately addressed for his fraudulent contract with the oil company was Francisco Pancho Colorado, who is known for his close ties to one of Mexicos most notorious cartels, the Zetas. SEE ALSO: New US international trade deal raises concerns about shadowy negotiations The government auditors can uncover as many flaws in Pemexs contracts as they can, but they can only dole out recommendations for change, not enact it. The responsibility of pursuing cases against Pemex lies with the Public Administration of Ministry, or the SFP. While these investigators are supposed to act separately of Pemex, Reuters discovered that many of these federal officials are on Pemexs payroll. Arturo Henriquez, Pemexs head of procurement, acknowledged the companys history of fraud and waste, but claimed that the company is attempting to iron out its flaws. We are going to mitigate bad practices with a centralized, standardized process with due controls, Henriquez said.The post More fraudulent contracts uncovered for Mexicos Pemex appeared first on Voxxi.
Government audits on Mexicos petroleum giant Pemex have turned up more fraudulent contracts.
According to a Reuters report, Pemex paid $9 million to tow an oil rig from the United Arab Emirates to the Gulf of Mexico in 2011.
A government audit unveiled major problems with this contract: the rig didnt have the correct equipment for the stated assignment and the rig was already in the Gulf of Mexico, which means that the contract was fabricated.
SEE ALSO: Coming in from Mexico? You might be an unwitting smuggler
After discovering the problems with this Pemex contract, the auditors notified the company so that it could discipline the employees that were in charge of the contract. Pemex, however, did nothing.
This isnt the first time that Pemex hasnt taken advice from auditors, however.
Reuters investigated Pemex contracts signed between 2003 and 2012, more than 100 of which had problems identified by the Federal Audit Office. In total, these shaky contracts were worth $11.7 billion, or about 8 percent of Pemex contracts registered during that time frame.
(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src = “//connect.facebook.net/en_GB/sdk.js#xfbml=1&appId=313098648827735&version=v2.0”;
fjs.parentNode.insertBefore(js, fjs);
}(document, “script”, “facebook-jssdk”));
Government auditors have issued 274 strong recommendations that Pemex make efforts to remedy its numerous contract irregularities.
Out of these 274 recommendations, Pemex only took action in three of the cases. Just a handful of employees were suspended.
In Mexico, no one gets punished, Arturo Gonzalez de Aragon, former head of the Federal Audit Office, told Reuters. If you dont punish anyone, impunity becomes a perverse inventive for corruption.
To add upon Pemexs corruption, one of the contractors who wasnt appropriately addressed for his fraudulent contract with the oil company was Francisco Pancho Colorado, who is known for his close ties to one of Mexicos most notorious cartels, the Zetas.
SEE ALSO: New US international trade deal raises concerns about shadowy negotiations
The government auditors can uncover as many flaws in Pemexs contracts as they can, but they can only dole out recommendations for change, not enact it.
The responsibility of pursuing cases against Pemex lies with the Public Administration of Ministry, or the SFP. While these investigators are supposed to act separately of Pemex, Reuters discovered that many of these federal officials are on Pemexs payroll.
Arturo Henriquez, Pemexs head of procurement, acknowledged the companys history of fraud and waste, but claimed that the company is attempting to iron out its flaws.
We are going to mitigate bad practices with a centralized, standardized process with due controls, Henriquez said.
The post More fraudulent contracts uncovered for Mexicos Pemex appeared first on Voxxi.
