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Graña y Montero makes governance changes amid bribery probe

Jaclyn Jaeger | June 6, 2017

Peruvian engineering and construction company Graña y Montero has made several governance changes of late, including the appointment of a new chief risk and compliance officer, as the company faces a bribery investigation connected to Odebrecht.

Prosecutors last month filed charges against Graña y Montero and a former top executive connected to bribery payments made by Odebrecht in exchange for winning a contract. “As we promptly announced to the market, and as a consequence of the current situation, we have launched an internal investigation, carried out by a renowned independent international company; notwithstanding the above, we will continue cooperating with the relevant authorities in the ongoing investigations,” the company stated.

Graña y Montero this month appointed Fernando Dyer as chief risk and compliance officer. In this capacity, Dyer will help ensure compliance with internal policies, in particular ethics, conduct, and anti-corruption policies, under the supervision and reporting of the board’s new risk, compliance and sustainability committee.

Other initiatives

This risk, compliance and sustainability committee is just one initiative of its “Committed to the Future” program, Graña y Montero’s recent declaration of principles and Good Corporate Governance, released on May 10 by the board of directors. This committee is responsible for supervising the internal investigation and shall report directly to the board of directors.

Other initiatives of this program include:

  • Creating an external Advisory Council led by renowned experts in Good Corporate Governance’s best practices;
  • Strengthening the anti-corruption programs training given to all employees, especially to officers and directors, with the supervision of the most recognized international institutions;
  • Thoroughly reviewing policies regarding all kinds of partnerships with other companies;
  • Strengthening our internal controls regarding public bids with government entities; and
  • Launching a new Relationship Policy with suppliers, clients, and citizens to improve the thoroughness of processes.

“All the advances of these six initiatives will be constantly shared,” Graña y Montero stated, “since we feel obliged to keep you informed of their compliance.”