PDVSA Actions in Rincón, Shiera Cases

Instant Max AI

(PDVSA, 20.Feb.2017) – As has been informed, PDVSA subsidiary Bariven, S.A., has been the victim of a fraud perpetrated by former contractors and suppliers of the company led by Roberto Enrique Rincón Fernández and Abraham José Shiera Bastidas, who in complicity with former employees of a foreign PDVSA subsidiary obtained procurement contracts through acts of corruption.

To date, eight implicated persons, including Rincón and Shiera, have pleaded guilty to such fraud before the United States District Court for the Southern District of Texas Houston Division.

Upon learning of the fraud, the company’s internal control bodies were immediately instructed to thoroughly investigate the situation.

PDVSA has made significant progress in this ongoing legal case. To compensate for the damage suffered as a result of these acts of corruption, the following actions have been taken:

— Bariven, as a direct victim of the acts of corruption, has introduced before the criminal court in Houston, Texas familiar with the criminal proceedings against the accused, a request for restitution to be recognized as a victim and order the defendants to compensate financially for the damages suffered by Bariven.

— On January 17, 2017, the trial judge adopted Bariven’s position and ordered all parties to the proceedings, including the federal prosecution representing the interests of the United States government as well as the accused, to submit their positions on Bariven’s request no later than February 20, 2017. This is a major breakthrough for Bariven, that had opposed the request by the federal prosecutor’s office to defer this process indefinitely. With this order, the judge ensures that Bariven will be heard and that the accused individuals will have to face up to their responsibilities.

— Companies linked to the persons accused in Houston, Texas were ordered to immediately stop receiving payment. Several of these companies initiated claims in arbitration tribunals requesting the payment of allegedly owed invoices. Bariven, as the other party in such contracts, has opposed said payment and furthermore, it has filed a counter claim against the plaintiff companies for damages caused as a result of contracts that show elements of corruption. The plaintiff companies in these cases are directly linked to Rincón and his family.

— We have investigated and identified in several countries, assets and property of persons linked to these acts of corruption and their possible front persons. The filing of all corresponding legal actions, both civil and criminal, has been authorized in the appropriate foreign jurisdictions.

Finally, the company has strengthened its internal controls and implemented new procedures to prevent situations such as these from happening again and ensure its prompt prevention, detection and response.

PDVSA and its affiliates will not tolerate acts of corruption and will continue to investigate and act with the aim of establishing responsibilities for all identified facts.

***

Previous post Juniper’s Trinidad Journey: From Construction To Installation
Next post PDVSA Pays Interest to Bond Holders

Leave a Reply

Your email address will not be published.