Head of Peru’s main water utility resigns over corruption allegations

Peru’s state attorney general is planning to make a formal complaint of corruption against Guillermo León, the former president of the state water utility agency, or Sedapal, who resigned on Wednesday over a scandal involving the construction of two waste water treatment plants.

“Today we are authorizing that our attorney general, with all of the evidence we have received, make a complaint to the Public Ministry,” state news agency Andina quoted presidential Cabinet Chief Javier Velásquez as saying.

The allegations of corruption involve Sedapal’s awarding of a 13 million soles, about $4.5 million, contract to TFKC Reprex to construct two waste water treatment plants in San Bartolo, a popular beach town located in southern Lima.

A recent investigation by television news program Panorama found that the contract was awarded in December 2008, a month after TFKC Reprex was formed and when the company’s capital was less than 3,000 soles, about $1,050.

León denied any irregularities. He said TFKC Reprex met all of the contract requirements and guarantees. He added that TFKC Reprex was representing Brazilian firm Puritech, which has the technology and experience to develop the water treatment plants.

León will be replaced by Deputy Housing Minister David Ramos until Housing, Construction, and Sanitation Minister Juan Sarmiento suggests a replacement, daily Gestión reported.

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