LIMA Feb 28 Peru's biggest construction group,
Grana y Montero , said on Tuesday that its
three top executives are stepping down amid a growing graft
scandal that had sunk its shares by more than 50 percent in two
Grana's shares climbed back up more than 10 percent on the
announcement of the resignations, which came ahead of a
shareholders meeting later on Tuesday to tackle the fallout of a
far-reaching corruption inquiry into the company's partner,
Brazilian builder Odebrecht.
The resignations of Jose Grana, the company chairman and son
of one of its founders; Chief Executive Mario Alvarado; and
director Hernando Grana will be effective on Thursday, the
company said in a statement. Deputy chief executive Luis Diaz
will become the new chief executive.
The company said it would continue to work to prove wrong
allegations that it knew about $20 million in bribes that
Odebrecht has admitted to giving to former Peruvian president
Toledo has denied wrongdoing.
The former head of Odebrecht in Peru was quoted in a local
magazine on Friday telling prosecutors that Grana the company
and its other local partners on two highway contracts were aware
of a deal to bribe Toledo and knew they would have to "assume
Grana's outgoing executives have not been accused of
Odebrecht has been at the center of Latin America's biggest
region-wide corruption scandal since acknowledging in late
December that it distributed hundreds of millions of dollars in
bribes from Peru to Panama.
(Reporting By Mitra Taj and Ursula Scollo; Editing by Bill