Corruption in the Construction Sector Could Stop Investments in Peru

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Corruption cases related to the construction sector in Peru rises up to $9,191 million dollars.

Peru’s economy is at great risk because of a systemic event in the construction sector, which has been under scrutiny for investigations to companies related to million-dollar-projects to be executed, said the Minister of Economy and Finances, Claudia Cooper, according to El Cronista.

She said before the Congress that the pending investment from companies linked to corruption cases rises up to $9,191 million dollars, which equals 4.2% of Peru’s gross domestic product, El Cronista explains.

Cooper spoke to the Congress to support a bill that seeks to hold back income and the selling of assets of companies involved in corruption cases to guarantee the payment of a civil compensation. It also seeks to replace an existing decree that expires today and that has stopped, to this day, the continuity of construction projects in the past.

“We need a legal norm that won’t stop our economy or our jobs (…) the impact in the economy would be very serious if we don’t do anything”, outlined Cooper in Congress, said El Cronista.

The Minister also added that if all of the construction projects linked to companies that have been related to corruption cases were stopped, the impact in the financial system would be of $3,375 million dollars in debt.

For Cooper, it would translate into “problems in the financial system”, that could include the loss of 43,000 jobs.

Among some of the firms under investigation for corruption is the largest one operating in Peru: Graña y Montero.

(Source)
(Cover Photo Pixabay)

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Ermelinda Maglione

Ermelinda is a journalist from Caracas, Venezuela. She has a Master’s degree in Digital Journalism and has recently finished a technical degree in Veterinary Assistance because of her love for animals. She likes to do sports, but especially ballet, which she has practiced for more than 17 years. Her passion is to read, write, and blog about different topics, as well as travel whenever she can.