Montevideo, Jan 17 (Prensa Latina) The conflict between the Uruguayan government and the Spanish manufacturer Cardama S.A. continues due to alleged breaches of contract by the shipyard in charge of building two ocean patrol vessels for the Uruguayan Navy.

In a new development in the controversy, the Executive Branch decided not to authorize the payment corresponding to the third milestone in the construction of the vessels, after the shipowner failed to provide proof of the availability of the Caterpillar engines for the first vessel.

The continuation of payments to Cardama is one of the points of contention surrounding the dispute between the Uruguayan State and the Vigo-based shipyard.

Although the deadline for confirming the availability of the engines is set for February 15, the manufacturer was required to provide proof of their readiness for installation before January 14.

Cardama apologized to the Ministry of National Defense (MDN) for Caterpillar’s breach of contract, but the Executive Branch indicates that the irregularities continue to mount.

Portal Maritimo reported that the MDN maintains that Cardama didn’t even pay “any down payment” for the manufacture of the patrol boat engines from the American company.

A prosecutorial investigation is underway at the request of the Uruguayan government for alleged fraud related to the guarantee presented by Cardama after the signing of the agreement, which was carried out by the previous administration of President Luis Lacalle Pou.

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