Chemical Distributor Caldic in Hot Water over Methanol Smuggling Allegations
Caldic, a chemicals distributor, faces investigation in Brazil for allegedly supplying methanol for a fuel fraud scheme linked to the PCC crime syndicate. Despite lack of evidence that Caldic knew of the diversion, its Brazilian subsidiary Quantiq is under scrutiny. The investigation underscores criminal infiltration into Latin America’s economy.
Caldic, a global chemical distributor, is embroiled in an investigation in Brazil over its alleged involvement in a methanol smuggling scheme, reports Reuters. The operation, linked to Brazil's largest crime syndicate, the First Capital Command (PCC), reportedly sold methanol as fuel in a $10 billion fraud operation.
While investigators have yet to find clear evidence that Caldic or its parent firm Advent International knew of the sales diversion, the probe, spearheaded by Sao Paulo state prosecutors, illustrates how sophisticated investors can get entangled with criminal networks in Latin America.
Brazil's regulator ANP has reduced Caldic's methanol sales and could revoke its distribution rights. As accusations circulate, Caldic's subsidiary Quantiq denies wrongdoing, citing an internal audit, while cooperating with authorities. The United States, pressing Brazil to categorize the PCC as a terrorist group, highlights diplomatic tensions arising from the syndicate's activities.
(With inputs from agencies.)
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