Brazil could freeze assets of construction firm

Thursday, January 11, 2018

Brazil's federal audit court (TCU) recommended freezing 520mn reais (US$160mn) in assets of construction firm Andrade Gutierrez due to alleged irregularities in building nuclear power plant Angra 3, local business daily Valor reported.

The freezing request represents yet another setback for Andrade Gutierrez, which is already under investigation by TCU in another case related to Angra 3, regarding alleged bidding fraud of the electromechanical assembly of the plant.

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Due to alleged overbilling in the power plant project, TCU wants to freeze assets of the company and of former directors of Eletronuclear, the company that administer the plant, Valor reported.

Angra 3 has already demanded 8.5bn reais in investments. An additional 17bn reais is necessary to complete the project, resulting in a total cost three times higher than initially estimated, according to the report.