Direcagro evaluates suing Agro Rural for more than US$ 9 million for canceling the purchase of urea

In the last days of last year, Agro Rural reported that it had canceled the purchase order for more than 44,000 tons of urea from the Paraguayan company Direcagro. The decision ended the government’s fourth attempt to buy the fertilizer.

Almost a month after the announcement, Pablo Leguizamón, president of Direcagro, told a local media outlet that the company would file a lawsuit against Agro Rural for “alleged damages.”

“Agro Rural, refuses to pay us for financial compensation for damages (after the cancellation of the urea purchase order in December). With this decision they are deciding to go to arbitration. They have not returned our deposit money either. The direct treatment stage expired on Thursday and although we gave him until Friday to resolve or have an answer, it was not like that, ”he commented.

According to Leguizamón, Agro Rural must reimburse Direcagro for the US$510,400 that were deposited as a guarantee. The refusal to this return would open the possibility of “proceeding with a criminal complaint against the officials.”

However, the lawsuit has not yet been filed because, although the direct treatment stage has been completed, there are still 15 calendar days left to resolve the controversy and after that there will be a period of 30 days to request arbitration.

Once the arbitration is completed, the Paraguayan firm would sue Agro Rural for damages and prejudices and request compensation for more than US$9 million. “Now we are discussing with our lawyer, but (the amount) exceeds US$9 million. It has not yet been defined since the lawyer is the one who has to determine (the number) that corresponds,” he said.

For their part, when consulted in this regard, from Agro Rural they commented “that the legal area is looking at this issue.” In addition, they added that Direcagro “has to correct several things and they are not doing it.”