Pemex removes official for conflict of interest in contract

Petroleos Mexicanos (Pemex) identified the participation of staff of its Exploration and Production unit in unlawful acts following an investigation conducted by the Accountability Unit, an agency of the Ministry of Public Service.

The investigation revealed that José Aroldo de Hoyos Morales, responsible for overseeing the work of a contract awarded to the consortium composed by Chamsa Grupo Corporativo and Mava Group Inc., was also a partner of Encino Integrated Services LLC, a third party hired by the consortium, along with Eduardo Javier Maqueda Natividad, who also serves as chairman of Mava Group.

The contract, for over 21 million dollars, was awarded to install and operate coiled tubing in oil wells in the north of the country.

Pemex added that despite the obvious conflict of interest, Hoyos Morales did not report it to Pemex, neither mentioned it in his statements to the Ministry of Public Administration.

Hoyos, who worked for different areas of Pemex since at least November 1996, will be barred from public office for ten years.