Uruguay sues Cardama shipyard for $35 million over alleged fraud

The Uruguayan government has initiated a civil lawsuit against the Cardama shipyard, demanding $35 million in damages for alleged fraud and breach of contract. The Ministry of National Defense filed the claim, seeking the return of payments made to the Spanish shipyard, plus damages, interest, and adjustments due to the contractual failures. The state had paid the company 28.79 million euros before the contract's termination.

Central to the lawsuit are the guarantees provided by Cardama, which the government argues were not valid. The suit details that a performance bond issued by Eurocommerce was allegedly false and not renewed within the stipulated timeframe. The government also contends that a reimbursement policy from Redbridge did not qualify as an insurance policy or financial advance as required by the contract. Furthermore, new information suggests an "independent" report presented by a Uruguayan insurance broker, which certified Redbridge's capacity, suffered from an undeclared conflict of interest, as the broker was also Redbridge's commercial representative in Uruguay.

The government asserts that Cardama selected the involved entities, managed the acquisition of guarantees, and submitted the documentation. The lawsuit accuses the shipyard of a "flagrant breach of contract," regardless of its involvement in illicit activities that led to the false guarantee. The failure to renew one of the guarantees is described as the "tip of an iceberg of falsehoods and multiple irregularities" that justified the contract's rescission.

As new evidence, the lawsuit incorporates the involvement of two intermediary companies allegedly hired by Cardama. The government suggests these companies may have served as "vehicles for the fraud" perpetrated against the Uruguayan state. This new claim points to a potential attempt to obscure the fraudulent scheme.