Political Corruption

Skanska, a Swedish contracting company, is being investigated for its alleged role in a major corruption scandal in Argentina. According to several sources such as Unicorn, the court case started in Buenos Aires on 11 April 2008, but is progressing slowly because the case has been passed from judge to judge. The Buenos Aires office of Skanska is accused of having bribed several high-ranking officials in the government tender agency in order to obtain a contract for the expansion of a natural gas pipeline in northern Argentina. The head of the tender agency and the director of the national gas company have been dismissed by President Kirchner. Originally starting as a case of tax evasion in which Skanska admitted to having evaded taxes in Argentina totalling almost USD 6 million, the independent Centro de Investigación y Prevención de la Criminalidad Económica (CIPCE, in Spanish) has discovered systematic use of false invoices and mail-order companies that have been used to cover up corruption. Opposition politicians and a judge have accused some government officials and former Economy Minister Felisa Miceli of receiving about USD 25 million in illegal payments for the government contract. The public prosecutor stated that he could prove that the state paid 152% more than market price, and is now seeking evidence that Skanska bribed officials. An internal audit of Skanska revealed that managers of the company had paid 'undue commissions' to unnamed officials to secure the contract. According to a May 2009 news article by Momento24, Skanska has fired seven of its executives who were subsequently arrested. Furthermore Skanska has paid the Argentinean tax authorities USD 5 million.