Manifesto of the Graña y Montero Group’s Board of Directors

To all Peruvians,

Many fellow citizens wonder how a company like Graña y Montero could have been involved with a foreign company accused of corruption. Mainly because Graña y Montero is the most important Engineering and Construction company they, their parents and grandparents have known since the company has accompanied Peru’s development for nearly one hundred years, building the country’s greatest public works and most emblematic buildings.

Although we do not have all the answers to this occurrence yet, the Board of Directors feels obliged to inform you that the Graña y Montero Group deeply regrets that you may feel the Company has disappointed you. The same feeling goes towards more than 28,000 employees, who have made the company the first Peruvian construction group, people who go back home from work every day, proud of contributing to the wellbeing and success of millions of families in the country.

The new Board of Directors, mostly composed of independent professionals, would like to communicate that at Graña y Montero we are strongly committed to transparency and integrity. With that in mind, we have made a first decision: to present the “Committed to the Future” Program, which will now be guiding all of our actions.

As we promptly announced to the market, and as a consequence of the current situation, we have launched an internal investigation, carried out by a renowned independent international company; notwithstanding the above, we will continue cooperating with the relevant authorities in the ongoing investigations.

“Committed to the Future” has already started and implies the following:

  1. We are creating an external Advisory Council led by renowned experts in Good Corporate Governance’s best practices.
  2. A new Risk, Compliance and Sustainability Committee has been created aimed to identify and neutralize the possible risks the Group may encounter, ensuring the faithful compliance of the most strict Good Governance practices worldwide. This Committee is in charge of supervising the internal investigation, and shall report directly to the Board of Directors.
  3. We will strengthen the Anticorruption Programs training given to all employees, especially to the Directors and Officers, with the supervision of the most recognized international institutions.
  4. We are thoroughly reviewing our policies regarding all kinds of partnerships with other companies.
  5. We are strengthening our internal controls regarding public bids with Government entities.
  6. We are launching a new Relationship Policy with suppliers, clients and citizens to improve the thoroughness of our processes.

All the advances of these six initiatives will be constantly shared, since we feel obliged to keep you informed of their compliance.

In Graña y Montero, we are aware that all efforts we will make will not be enough to recover our prestige and credibility. However, you can be sure that our Group is totally committed to rebuild trust among Peruvians and that Graña y Montero will remain being the great company that has made the country proud during many years.

Augusto Baertl M.

Chairman of the Board of Directors
Grupo Graña y Montero