Cemex Under DOJ Investigation

The U.S. Department of Justice (DOJ) is investigating payments made by Cemex related to the construction of a plant in Maceo, Colombia, to determine whether the company violated federal bribery laws, according to multiple media sources.

Cemex said in a filing last month that it had received a federal grand jury subpoena related to the Colombian project.

In September 2016, the company dismissed the vice president for planning and the general attorney for its Latin America and Colombian units after an internal probe uncovered improper payments of around $20 million were made to a non-government individual for land and mining rights, and access to a tax-free benefit zone that included the site of the plant. Carlos Jacks, the chief executive of Cemex Latam Holdings resigned at the same time.

In December 2016, Cemex said it received a subpoena from the U.S. Securities Exchange Commission (SEC) for information to determine whether the company had violated the Foreign Corrupt Practices Act.

Cemex said it would cooperate fully with the investigation. It could not predict the duration, scope or outcome of the investigation or any others that may arise.

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