Sedapal denies irregularities in contract for water treatment plants in San Bartolo

The president of Peru’s state water utility agency, Sedapal, denied on Tuesday irregularities in the agency’s decision to reward a multi-million dollar contract to a newly formed company owned by a former Peruvian soccer player, Radio Programas Peru reported.

Sedapal awarded a 13 million soles, about $4.5 million, contract to TFKC Reprex to construct two waste water treatment plants in San Bartolo, located in southern Lima. The contract was awarded a month after TFKC Reprex was formed and when the company’s capital was less than 3,000 soles, about $1,050. The company is co-owned by former soccer player Julio César de Andrade, also called Julinho. De Andrade holds both Peruvian and Brazilian citizenship.

Sedapal’s president, Guillermo León, said TFKC Reprex met all of the contract requirements and guarantees. He added that TFKC Reprex was representing another Brazilian firm, Puritech, which has the technology and experience to develop the water treatment plants.

“We determined that the technology was adequate enough to construct the treatment plants,” daily El Comercio quoted León as saying. “But the law prevents us from contracting foreign companies, that’s why Puritech allowed TFKC Reprex to represent them.”

The oversight committee of Peru’s Congress has asked the comptroller general to review the contract and investigate irregularities.

“The company should provide information about their trajectory,” daily La República reported Congressman José Maslucán of Peru’s Nationalist Party as saying. “A project of such magnitude requires experience, however (TFKC Reprex) was awarded the contract too easily.”

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