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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into CEMEX Latam and Cemex Colombia's Activities in Colombia · CEMEX, S.A.B. de C.V.

Information & Summary

Investigation into CEMEX Latam and Cemex Colombia's Activities in Colombia

Related FCPA Matter:   CEMEX's Involvement in Colombia Information

Information & Summary

Investigation Name:    Investigation into CEMEX Latam and Cemex Colombia's Activities in Colombia

Trend:    None

Type of investigation:    Internal, SEC, DOJ

Other Agencies Investigating/Assisting with SEC/DOJ Investigation:   

  • Colombian Attorney General (Fiscalia General de al Nacion)

Whistleblower:    Yes

Summary

CEMEX, S.A.B. de C.V. (CEMEX), a Mexican concrete company, lists its stock on the NYSE.

According to company filings, during 2016, CEMEX received reports through its anonymous reporting hotline that certain employees had committed potential misconduct in connection with the Maceo Project, which was the construction of a cement plant by CEMEX subsidiaries CEMEX Latam Holdings and CEMEX Colombia in Maceo, Colombia. The company initiated an internal investigation into the allegations and discovered irregularities in the process of the acquisition of land, mining rights, and the benefits of a tax free zone connected with the project. Approximately $20.5 million had been paid by CEMEX Latam and CEMEX Colombia to a non-governmental third party contrary to CEMEX compliance and governance policies and protocols.

In reponse to the findings of the investigation, CEMEX terminated the CEMEX Latam and CEMEX Colombia officers responsible for the payments, and the CEO of CEMEX Latam subsequently resigned. CEMEX reported the issue with the Maceo Project to the Colombian Attorney General.

On December 9, 2016, CEMEX disclosed that it had received a subpoena from the SEC in connection with the Maceo Project seeking information to determine if there had been any violations of the FCPA.

On March 12, 2018, the DOJ issued a grand jury subpoena to CEMEX relating to the company's operations in Colombia and other jurisdictions.

CEMEX has said it was cooperating with the DOJ, SEC, and the Colombian Attorney General.

This investigation is ongoing.

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