By Elida Moreno
PANAMA CITY (Reuters) – Panama canceled a contract with the Brazilian company CNO S.A. for “non-compliance” in the construction of a terminal at the country’s main airport, according to a statement by the general manager of Tocumen International Airport.
“Tocumen has terminated the contract with the company CNO S.A. for breach of the obligations agreed in the contract,” according to the statement by Raffoul Arab.
The cancellation of the contract could mean that CNO would also be barred from bidding for future state-owned projects, the statement said.
“The contractor CNO S.A. was also disqualified for breach of contract, which prevents their participation in (future) bids and contracts with the Panamanian State,” it said, without specifying when the ban would take effect.
CNO could not be reached for comment.
CNO is a wholly-owned unit of Brazilian conglomerate Novonor, previously known as Odebrecht S.A.
Odebrecht was investigated in Panama for paying bribes to obtain contracts in the country. In 2017, it signed an agreement with prosecutors and agreed to pay a fine of $220 million.
Panama cancels contract with Brazil’s CNO for airport terminal construction
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.