MEXICO CITY, (Reuters) – Mexico has banned federal institutions and state governments from doing business with Brazilian construction firm Odebrecht SA for the next 2-1/2 years, and fined the company around $60 million, the government said.
State bodies are prohibited from “participating in federal public contracts or any contract with Construtora Norberto Odebrecht S.A.,” the government’s official gazette said late on Tuesday. Existing contracts were not affected, it added.
Two units of the Brazilian company had each been fined 543.5 million pesos ($30.1 million), a government document showed. Two legal representatives of the company were also fined 1.26 million pesos ($69,700) each, it added.
The decisions relate to probes into suspected corruption involving Odebrecht’s business with state oil firm Pemex , officials say. The government did not provide details.
Odebrecht said in a statement that the company had been notified and was analyzing the steps taken by Mexico.
Odebrecht has spent the past few years at the center of one of the largest corruption scandals in Latin America, and has admitted paying bribes from Peru to Panama.
