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July 3, 2022
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Petropar awards questioned “tradings”

Petróleos Paraguayos (Petropar), awarded the company Trafigura Pte Ltd for a total value of G. 666,323 million (US$ 97 million), managed to win the so-called tender; “Acquisition of Diesel” with ID 410,794. For this tender, offers began to be received on Monday, June 6, 2022.

The call was carried out under the category of Fuels and Lubricants, by the type of procedure of International Public Bidding (LPN).

The aforementioned institution awarded one item; 78750 units of Gasoil – Modality Fob / Campana / Km 171 Rio Parana Guazu; Rep. Argentina with a unit price of G. 8,461,250. The aforementioned firm has Nicolas Simian as its legal representative.

Two more companies presented themselves to the call: Glencore International Ag and Vitol SA

BACKGROUND

These three companies; the awarded Trafigura as the two losing companies; Glencore and Vitol have been investigated since 2018 by the Brazilian Justice for alleged links to the “Lava Jato” operation.

These companies are being investigated for having paid bribes to Petrobras company officials. The Brazilian Prosecutor’s Office suspects that between 2009 and 2014, these companies known as “tradings” paid around US$31 million in bribes to Petropar officials to receive benefits such as better prices or more frequent contracts for the acquisition of derivatives.

BILL

Last Wednesday, the Chamber of Deputies sent to the archives bill 6909, which exempts any foreign legal entity dedicated to the commercialization of hydrocarbons for the provision of fuels and biofuels from compliance with the provisions set forth in laws 2051/2003 of Public Procurement and 6355/2019 that modifies articles 1,3,4,7, 13 and 21 of law 5033/13 that regulates article 104 of the National Constitution, of the Sworn Declaration of assets and income, assets and liabilities of public officials and expands the provisions of Law 2051/03, its amendments and supporting regulations.

The law enabled Petropar to negotiate the purchase of fuel without these intermediaries. The purchases would be made to foreign firms that will not have the obligation to submit their sworn statements and the process will not need to go through Public Contracting (DNCP).

The Executive had partially vetoed the project in relation to the “bypass” of the DNCP law. In other words, he objected that the purchases be made without going through the control of Public Procurement.

On June 16, the Senate had accepted the veto, but the Deputies did not reach the 41 votes necessary to accept the non-objected part, which consisted of the non-necessity of submitting sworn statements from foreign supplier firms. The objective was to streamline purchases and lower costs so that they also have an impact on the reduction of sales prices for the local consumer.



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