MercoPress. South Atlantic News Agency

Uruguay accuses Spanish shipyard Cardama of fraud; company calls it political interference

The contract, signed under former president Luis Lacalle Pou, called for the delivery of the ships to Uruguay’s National Navy to strengthen maritime surveillance and resource protection

The Uruguayan government has filed civil and criminal charges against the Spanish shipyard Cardama, which was contracted to build two offshore patrol vessels (OPVs) worth more than US$92 million, after detecting alleged irregularities in the company’s performance bond. The case has escalated into a diplomatic and political dispute, with Montevideo accusing the shipyard of fraud and Cardama denying the charges, claiming it is being used for “electoral purposes.”

Uruguay’s Secretary of the Presidency, Alejandro Sánchez, and Deputy Secretary, Jorge Díaz, formally submitted the complaint to the Attorney General’s Office on Thursday. “Protecting the money of Uruguayans has no political color. It is a moral duty. That’s why today we reported serious indications of fraud to the Justice system. No one is above the law,” Díaz wrote on X (formerly Twitter).

President Yamandú Orsi described the case as “serious” and said the country had faced an “attempted fraud against the Uruguayan state.” According to the government, Cardama failed to comply with the 45-day deadline to present a performance bond—equivalent to 5% of the contract’s total value—and repeatedly requested extensions without meeting its obligations.

After the delay, the government hired a British law firm, which verified within 24 hours that the financial institution backing Cardama’s guarantee had been under liquidation since August 2025. The investigation also found that the company in question had only one employee and was directed by a Russian national. “The previous administration did not take the necessary precautions to verify the solvency of the company providing the guarantee,” said Díaz.

The contract, signed under former president Luis Lacalle Pou, called for the delivery of the ships to Uruguay’s National Navy to strengthen maritime surveillance and resource protection. So far, the state has disbursed approximately US$30 million in partial payments.

Cardama denies fraud, blames political motives

From Vigo, Spain, Mario Cardama, the shipyard’s managing director, firmly rejected the accusations, insisting that the company acted lawfully. “There is no fraud whatsoever. We have fulfilled the contract and renewed the guarantees every year,” he said in an interview with Onda Cero Vigo.

Cardama suggested that the controversy has political roots. “This is an electoral issue in Uruguay. We are being used for domestic political purposes,” he claimed. The executive said he was unaware of any liquidation proceedings involving the British bank used for the guarantees and added that the company had presented “three different banks” to back the project.

He also stated that the construction of the patrol vessels is ongoing, with 60% of the steel for the first ship already completed and 90% of the equipment and components ordered. “Uruguay needs these ships, and we are fully committed to delivering them. But if the country decides to terminate the contract, we have an alternative buyer lined up in another region,” he warned.

Political fallout and diplomatic tension

President Orsi has ordered administrative investigations in the Ministry of Defense, the state-owned Banco República, and the Ministry of Economy and Finance. “The Uruguayan state will do what it always does: honor its contracts while protecting the public interest,” he said.

The dispute has caused concern in Spain’s shipbuilding industry and strained diplomatic relations between Montevideo and Madrid. The potential cancellation of the deal could jeopardize one of the most significant industrial contracts for the Galician shipyard in Latin America.

For Uruguay, the case is about setting an institutional precedent. “No one is above the law—neither inside nor outside the country,” emphasized Díaz.