Swedish construction company accused for contamination and corruption

The operations of the swedish construction company Skanska in Peru, Argentina and Ecuador are in the spotlight for contaminating impacts, violation of human rights and dubious transparency.

Skanska’s construction and infrastructure projects as well as its oil and gas explorations have grave impacts on natural resources, workers, indigenous communities and public finances. The denunciation before the Permanent Peoples’ Tribunal (TPP) is presented by the Centre for Investigation and prevention of criminality (CIPCE), a programme of the Centre for public politics for socialism (CEPPAS).

Skanska is one of the 10 biggests construction companies worldwide, managing projects in Bolivia, Brasil, Chile, Czech Republic, Denmark, Finland, Hungary, Mexico, Norway, Poland, Sweden, UK, US, and Venezuela.

In Argentina Skanska won a concession to expand the gas network in the whole country within the frame of the Initiative for the Integration of Regional Infrastructure in South America (IIRSA). One of the projects carried out within this plan was the “Deán Funes” project for the further development of the Northern Gas Pipeline. In 2005, this project ended up in court for tax evasion and setting up of and illicit tax association. The investigation found, among other irregularitites, the issuance of false invoices and payments to a “ghost company”. Charges of corruption involving high-ranking government officials are still under investigation. Unjustified price surcharges and payment of improper commissions which were used to channel bribes to public officials, together with the evasion of taxes clearly affected the Exchequer, depriving it of resources to finance public politics. It is estimated the Skanska is responsible for a loss to the State of at least 20 million pesos, plus the total amount of taxes evaded.

In Perú the Swedish company was involved in the expansion plans of the Camisea gas pipeline. Additional to denunciations of corruption and payment of surcharges, Skanska is accused for its responsibility for irreparable damage to the ecosystem, caused by non-compliance with technical specifications and lack of a protection system for the pipes resulting in multiple explosions. Among other damages, at least four liquid gas spillages were recorded. These were registered among the worst ever environmental disasters in the Amazon among the biggest worldwide.

In Ecuador, Skanska was in charge of the road infrastructure for an exploration project of Brazilian oil company Petrobras, situated in the Huaorani territory within the Yasuní National Park Following complaints by the Huaorani and environmental organizations about the impacts on this important biodiversity centre, the government withdrew Skanska´s license. However, negotiations are still ongoing and the possibility that Skanska takes up its activities again cannot be ruled out. Furthermore, Skanska is accused of fraud, illegal gas flaring, discharge of waste water and gender discrimination, among others. The claimants affirm that it is difficult to investigate these activities since the zone is militarized and Skanska disposes of its own private security guards.

These cases are examples or the privatization of justice and the impunity which the company enjoys despite the infringements it commits. This is facilitated by various facts: the national norms do not oblige companies to be accountable; the control bodies, judges and attorneys are not independent; and the company has links to and influence on local political powers. For these reasons, the case is presented before the PPT.

Key issues: Infrastructure for exploitation

Denouncing organizations: Centro de Políticas Públicas para el Socialismo – CEPPAS (Argentina), Colectivo SKAMSKA (Suecia)