| Chevron Calls for Investigation, Disqualification of Judge in Ecuador CaseSAN RAMON, Calif., Aug 31, 2009 (BUSINESS WIRE) -- Chevron Corp. (NYSE:CVX) today provided authorities in Ecuador and the
U.S. with video
recordings that reveal a $3 million bribery scheme implicating the
judge presiding over the environmental lawsuit currently pending against
the company and individuals who identify themselves as representatives
of the Ecuadorian government and its ruling party.
In the videos, the judge confirms that he will rule against Chevron and
that appeals by the energy company will be denied - even though the
trial is ongoing and evidence is still being received. A purported party
official also states that lawyers from the executive branch have been
sent to assist the judge in writing the decision.
The recorded meetings also show an individual who claims to be a
representative of Ecuador's ruling political party, Alianza PAIS,
seeking $3 million in bribes in return for handing out environmental
remediation contracts to two businessmen after the verdict is handed
down. Of that sum, he said $1 million would go to Judge Juan Núñez, $1
million would go to "the presidency" and $1 million to the plaintiffs.
The video-taped meetings occurred in May and June of 2009. Two of the
meetings took place at the Quito offices of Alianza PAIS, one meeting
took place in the judge's chambers in Lago Agrio, and a second meeting
involving the judge took place in a Quito hotel.
After referring the evidence of the scheme to authorities, Chevron
Executive Vice President Charles James said that company lawyers will
seek the disqualification of the judge in the case and annulment of his
prior rulings.
"Chevron has consistently asserted that the case has involved improper
complicity between the plaintiffs and Ecuador's executive branch and
other legal irregularities," James said. "These video recordings raise
additional serious questions about corruption, executive branch
interference and prejudgment of the case that demand a full
investigation. No judge who has participated in meetings of the type
shown on these tapes could possibly deliver a legitimate decision."
Evidence of the bribery plot was brought to Chevron's attention in June
by an Ecuadorian, who was pursuing business opportunities in Ecuador
with an American businessman. The Ecuadorian, Diego Borja, has performed
work for Chevron as a logistics contractor. Borja also has a relative
who works as a contractor to Chevron. The American, Wayne Hansen, has no
relationship to Chevron. Since the time that the recordings came into
Chevron's possession, the company has made extensive efforts to
authenticate and preserve the information.
Borja and Hansen recorded their meetings in Ecuador without Chevron's
knowledge, and neither man was paid to provide the recordings to
Chevron. Because of concern for Borja's safety, Chevron has assisted him
and his family with relocation expenses and other interim support.
"We are calling upon Ecuadorian authorities to conduct a full
investigation of this matter - focusing not only on the conduct of Judge
Núñez, but also on the very serious indications of political
interference in this case," James said. "Given the highly sensitive
nature of this information and our concerns about the rule of law in
Ecuador, we felt compelled to put this entire matter into the public
domain as a check against retaliation or further unlawful conduct as it
relates to the case there. We also believe that public disclosure will
encourage a deeper investigation of these matters by appropriate
officials within Ecuador."
On May 11, Borja and Hansen attended a meeting at the Quito offices of
Alianza PAIS where they were introduced to Patricio Garcia, who
represented himself as an official with the party. Later, Garcia
arranged for Borja and Hansen to fly to Lago Agrio for a May 15 meeting
with Judge Núñez. During the meeting, held in the judge's chambers and
recorded by Borja and Hansen, Judge Núñez stated that the government of
Ecuador, not the plaintiffs, would receive the funds earmarked for
remediation produced by the judgment against Chevron.
Subsequently, Borja and Hansen met with Judge Núñez at a Quito hotel on
June 5. Attending the meeting was Juan Pablo Novoa, who represented
himself as legal counsel for government officials.
During the meeting, Judge Núñez answered a series of questions about the
case from the businessmen, who were seeking assurances the court
proceedings would generate business. Novoa stated that "we have the
political power" to direct remediation contracts and stressed the judge
"is generating the work through the ruling." Novoa added, "The offer
from the people in the government that I represent, I'm a delegate of
them, so I'm accompanying the judge so that you can be serious about the
case."
Judge Núñez confirmed that he would be issuing a ruling, the appeal
would be a formality and the government would be handling the funds
associated with remediation contracts. In a final exchange with the
businessmen before the meeting ended, Judge Núñez revealed how he was
planning to handle his ruling:
Núñez: "Any other questions for me as a judge?"
Hansen: "Oh no, I, I know clearly how it is, you say, Chevron is the
guilty party?"
Núñez: "Yes Sir."
Hansen: "And the, the, the act (decision) is October or November of this
year?"
Núñez: "Yes Sir."
Hansen: "And it's...?"
Núñez: "No later than January."
Hansen: "January 2010. And the money is twenty-seven (billion dollars)?"
Núñez: "It might be less, and it might be more."
The last recorded meeting regarding the bribes, in which Judge Núñez was
not present, occurred June 22 at the Alianza PAIS office in Quito.
During the meeting, Garcia confirmed the details of the bribe:
Borja: "OK. Of the three million ... one million is for the judge?"
Garcia: "Yes."
Borja: "One million for the presidency...?"
Garcia: "Yes."
Borja: "And one million for the plaintiffs?"
Garcia: "Yes, that's right."
Borja: "But for the plaintiffs, who gets the money, man? Fajardo?"
Garcia: "No. On this matter, we're going to handle it here."
Borja: "You mean Alianza PAIS would receive the payment here?"
Garcia: "Right."
For the full transcripts and the complete video recordings, go to www.chevron.com/ecuador
or http://www.youtube.com/watch?v=var67Gg9rKs.
Chevron Corporation is one of the world's leading integrated energy
companies, with subsidiaries that conduct business worldwide. The
company's success is driven by the ingenuity and commitment of more than
62,000 employees who operate across the energy spectrum. Chevron
explores for, produces and transports crude oil and natural gas;
refines, markets and distributes transportation fuels and other energy
products; manufactures and sells petrochemical products; generates power
and produces geothermal energy; provides energy efficiency solutions;
and develops the energy resources of the future, including biofuels and
other renewables. Chevron is based in San Ramon, Calif. More information
about Chevron is available at www.chevron.com.
Editor's Note:
Spanish transcripts and a Spanish version of this release are also
available at www.chevron.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6039209&lang=en
SOURCE: Chevron Corp.
Chevron Corp. Donald Campbell, 925-842-2589 (San Ramon) Kent Robertson, 925-842-1695 (San Ramon) James Craig, 646-416-0191 (Miami)
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