Saturday, June 24, 2006

Corruption: Bolivia to sue Enron executives

The Bolivian government has said it would sue former executives of U.S. energy company Enron as well as ex-government officials for fraud in relation to a natural gas pipeline to Brazil built in the 1990s.

Approximately 40 people to be included in the charges are former President Gonzalo Sanchez de Lozada and several U.S. citizens, Energy Minister Andres Soliz told a news conference in La Paz.

He said the state would seek to recover profits made by Enron and its subsidiaries in Bolivia, accusing the bankrupt U.S. company of having paid bribes and illegally made profits from the natural gas pipeline. He alleged Enron carried out business deals in the country on the basis of a contract signed in Miami under U.S. law but invalid in Bolivia.