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PR NewswireEcuador Congressman Presses Criminal Investigation of Chevron for Fraud in Environmental Clean-up, Amazon Coalition Says
Posted : Wed, 19 Sep 2007 14:02:53 GMT
QUITO, Ecuador, Sept. 19 /PRNewswire/ -- A leading congressman in Ecuador this week asked the country's national prosecutor to re-open a criminal investigation of Chevron for committing fraud in a botched remediation of a large oil-related disaster in the Amazon rainforest, according to the Amazon Defense Coalition, a group of communities and indigenous groups in Ecuador that is pressing a multi-billion dollar legal case against the company.
The letter furthers increases Chevron's corporate governance problems in the oil-rich South American country, where a predecessor company (Texaco) was the exclusive operator of an oil consortium from 1964 to 1990. During this period, Texaco dumped more than 18 billion gallons of toxic waste into a 1,700 sq. mile are of the rainforest, purportedly to save $1 per barrel.
Chevron is currently a defendant in a class action lawsuit over the contamination, where plaintiffs estimate damages could top $10 billion. Four indigenous groups who have lived for centuries where Chevron operated claim their cultures have been decimated and that they are on the verge of extinction.
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The letter follows a recent request by Ecuador's Attorney General to the U.S. Department of Justice seeking a criminal probe of Chevron based on evidence found in the environmental trial that shows hundreds of toxic waste pits were never remediated, despite Chevron's representations to the government that they were. Ricardo Reis Veiga, a top Chevron lawyer in Latin America, has been dubbed the "architect of fraud" by spokespersons for the affected communities for his role in certifying the allegedly fraudulent clean-up.
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