The Appellate Court of Seville in Spain ruled in favor of Emerita Resources Corp.'s appeal against a lower court decision to dismiss a criminal case against the Andalusian government panel responsible for awarding the Aznalcollar zinc project and Andalusia's former director of mines.
The court concluded that the project was wrongfully awarded to Grupo México SAB de CV unit Minorbis-Grupo Mexico.
The company said Oct. 4 that according to the Spanish Counsel, a tender is awarded to the next qualified bidder, Emerita in this case, if there is a crime committed during the award of a public tender.
The ruling said the Andalusian government panel acted illegally when allowing an incomplete bid from Minorbis-GM to proceed, and it was "patently in breach of the requirements of the first phase of the tender, for various reasons."
Additionally, the court said there is ample evidence of the crime of prevarication as well as that of "influence peddling, fraud, bribery and embezzlement."
The Appellate Court ordered the lower court to reconsider and investigate the claims against the Andalusian government panel and the former director of mines and ordered it to investigate certain representatives of Minorbis-GM. This is the second time the Appellate Court has ordered the lower court to reopen its investigation and to probe whether the accused committed crimes including fraud, bribery and embezzlement.
Emerita CEO David Gower said the company is "highly satisfied" with the ruling and will consult with government officials to fully understand the process going forward.
