100 days after having started the program Committed with the Future, the Chairman of the Board of our Graña y Montero Group fulfills the commitment to report on the progress made in our corporate strengthening process.
Below we are sharing his letter:
As we have already recognized, our company made the mistake of partnering with the Brazilian company Odebrecht, prioritizing the growth of the business, without adequately pondering the value of our reputation. Given this, we decided to learn the lesson and take on new challenges that will allow us to move forward. Thus, through the program Committed with the Future, Graña y Montero (G & M) seeks to lead the management of Risks, Good Corporate Governance and Compliance, developing the highest international standards of ethics, transparency and integrity, through initiatives that we are sure will reinforce the confidence of our clients, investors, suppliers and of all Peruvian society in our Group
Progress in these first 100 days
CORPORATE GOVERNANCE AND COMPLIANCE
We created the new Risk, Compliance and Sustainability Committee in the Board of Directors, in order to identify and neutralize the possible risks the Group could face. At the same time, we have implemented the policies and procedures of an international company
We have incorporated Fernando Dyer, an international expert in Risks and Compliance who is leading the new Risk and Compliance management and reporting his work directly to the Board.
We have signed an agreement with the International Anticorruption Institute (IACA), the first institution in its type, dedicated to training professionals in the anticorruption training program created by the United Nations. This agreement is allowing us to strengthen the cooperation of our collaborators in the prevention of fraud and unethical behavior.
We are finalizing the set up of the External Advisory Board. Javier Tovar, who is already a member of the Board, will contribute to the election of the other experts in Good Corporate Governance practices that will be part of it.
We are deeply reviewing our policies of all types of partnerships with other companies, by reinforcing our controls in the processes of public contracting with the State and launching a new relationship policy with suppliers, customers and citizens. All this has been translated into increasingly demanding and efficient processes
Constructora GyM has obtained a new syndicated credit line with five major banks (Banco de Credito del Peru, Scotiabank, Interbank, Citibank Peru and BBVA) for US $ 161.1 million and an additional line of letters of guarantee up to US $ 100 million, in order to meet the future projects of the company. With this important agreement signed, we have successfully completed a stage of financing negotiations, both with local and international banks, which reaffirms the confidence of financial institutions in the future of the Graña y Montero Group.
We have carried out the sale of five non-strategic assets of the Group, the total amount of which amounts to US $ 192.7 million. It is thanks to this process and to the trusts created specifically for projects, that the income flow of the projects has not been affected by the indebtedness of the Sur Peruano Gas Pipeline (GSP).
The debts generated by the cancellation of the GSP amounted to US $ 331 MM and to date it has already been reduced to US $ 204 MM (38%), in line with our plan to reduce the Group’s total indebtedness.
We have already won new contracts with domestic and foreign private clients, which has reaffirmed our confidence in the Group and our performance.
We wanted to share with you this balance for the first 100 days of our program Committed with the Future, because we feel committed to the whole country and our different interest groups.
We consider that the actions implemented in these two sections -Risks, Good Corporate Governance and Compliance, as well as financial strength-, added to the commitment of the entire G & M team, are allowing us to make important progress in the development of our activities such as, for example, the closing of contracts for the construction of a new shopping center, an access road to a major hydroelectric power plant, as well as other important contracts for the mining sector. We believe that we are on the right track, and we thank our customers for trusting us.
Finally, I would like to assure you of our commitment to truth, transparency and integrity, and we will continue to work hard to make the Graña y Montero Group once again one of the most reliable companies in the country and the region.