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Uruguay Probes Suspect Patrol-Boat Guarantee as Contract Termination Remains Undecided

Officials have opened civil, criminal, administrative cases to recover €28.79 million.

Overview

  • In a lengthy Senate session, Defence Minister Sandra Lazo said no final decision has been taken to rescind the €82 million contract despite President Yamandú Orsi’s October announcement.
  • Lazo reported the state has already paid €28,794,500, roughly 70% of the first vessel’s price, and is seeking to recover the funds.
  • The performance bond of about €4 million was issued by London-based EuroCommerce, reported in liquidation, and a Valencian notary has denied authenticating the accompanying document now before the Fiscalía.
  • The government has filed and expanded civil, criminal and administrative actions after officials deemed the original guarantee and a late “renewal” presented by Cardama to be false.
  • Navy reports from Vigo cite serious technical irregularities, delays and potential stability risks that point to possible noncompliance, while Cardama has lodged a complaint against EuroCommerce alleging it was deceived.