By Benjamin Bain
Recordings appearing to show OHL Mexico SAB executives’ efforts to increase highway tolls and pay for a state official’s beach-hotel room threaten to disrupt a construction industry already hurt by budget cuts and a scandal involving President Enrique Pena Nieto’s wife.
The toll-road operator’s shares have tumbled 20 percent in the past week as the State of Mexico government disclosed plans to investigate the allegations, contained in a pair of videos posted on the Internet. While Mexico City-based OHL Mexico has denied wrongdoing, its chairman acknowledged last week that executives offered to pay for the Caribbean luxury hotel before the invitation was rejected by the official.
The controversy comes on the heels of a $4.3 billion high-speed train project that was suspended in January after reports emerged that one of the winning bidders built a luxury home for the president’s wife. She and Pena ... Read More