Uruguay Government to Meet Migratory Control Firm Amid $10.7 Million Arbitration Claim

The Uruguayan government is preparing to convene a meeting with Veridos, a company managing the nation's migratory control systems, in an effort to avert an international arbitration process. Veridos, a firm with Mexican and German capital, is demanding $10.7 million from the Uruguayan state, alleging non-payment for its services at ports and land border crossings. The company has already initiated the preliminary steps for international arbitration, a move the current administration hopes to resolve through dialogue.

Veridos, which provides services at the ports of Montevideo and Colonia, as well as at terrestrial border crossings, claims it has not been paid the agreed-upon fee of $2.10 plus VAT per passenger controlled, despite the system being operational for over a year. The company formally notified President Yamandú Orsi and the Ministers of Economy and Finance and the Interior of the start of the negotiation period on August 11.

Government sources indicated that their primary objective is to avoid legal tribunals. "The idea is to reach an agreement; to sit down and talk and find a solution," stated an official from the Executive Tower. The administration expresses regret over what it terms a "negative inheritance" from the previous Luis Lacalle Pou government. This situation echoes other financial disputes, including past-due payments for the Ferrocarril Central project, which required a $144 million settlement, and a contract dispute with the Cardama shipyard over the acquisition of two oceanic patrol boats, which the current government rescinded and took to court.

This potential arbitration adds another layer to the ongoing political disagreements between the current administration and the opposition. Former senator Charles Carrera has previously criticized "inexplicable measures" taken during the prior administration, noting that the contract awarded to Veridos was flagged three times by the National Audit Court.

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The idea is to reach an agreement; to sit down and talk and find a solution.