Direcagro to Sue the State for Over $9M

Four failed attempts Agriculture To obtain fertilizer For farmers, this could end up in a million-dollar lawsuit against the state after the termination of the contract with Direcagro, the latest company to win a lucrative deal to supply urea.

Let’s remember that direkagro won after the first three bidders were disqualified for not guaranteeing quality fertilizer. This will result in a claim for “alleged damages” against the aforementioned company.

“Agro Rural refuses to pay us financial compensation for the damage (after canceling the order for the purchase of urea in December). With this decision, they decide to apply to arbitration. They also didn’t refund our deposit money. The direct treatment expired on Thursday and although we gave him until Friday to decide or get an answer, that was not the case,” said Pablo Leguizamón, president of Direcagro, Gestión.

In the event of a guarantee alone, Agro Rural would owe around $510,400, so there is a risk a complaint they are fighting against officials”, international arbitration is added to this in order to determine the amount of damage for the disrupted process.

At this point, Leguizamon, this decision has not yet been made, because although the direct appeal phase has already ended, there are still 15 calendar days left to resolve the dispute, and after that there will be a 30-day period to request arbitration.

How much will Direcagro sue?

According to the CEO, Agriculture “Illegally withholds funds that do not belong to you.” The amount is 2% of the contract amount (25.5 million US dollars), which is equivalent to 510,400 US dollars. “On December 30 last year, they canceled the contract and still haven’t returned it,” he said.

He also stressed that Agro Rural apparently made the signing of the agreement conditional on the fact that it would not seek damages. However, the decision has been made, the businessman said, and everything indicates that the amount of the claim will exceed $9 million.

“After completing the direct appeal stage, we immediately go to arbitration. We will submit the file to the Chamber of Commerce. Our lawyer will take over all the proceedings related to this, but we are going to go to arbitration, ”he said.