Ecuadorian Government will spend USD 900.000 on a “lobbyist” company to seek an agreement with the US

The Firm clarified that it does not commit to the conclusion of the agreement, but Ecuador will still have to pay the total value of the contract and the extra expenses they incur.

The US firm Arnold & Porter Kaye Scholer LLP was hired by the Government of Ecuador, through the Ministry of Production, Foreign Trade and Fisheries to work as a lobbyist in the trade agreement between Ecuador and the United States.

The cost of this contract would amount to USD 900.000 and could be increased if there are additional expenses, but the company does not provide any promise or guarantee that the agreement will be finalized.

The firm explained that the estimated cost for per diem and transportation would amount to USD 50.000, but it is not included in the final amount of the contract and the Ecuadorian State would have to assume these costs, if they occur. Individuals with special training or experience could also be hired and the company would recommend that the Republic of Ecuador assume responsibility for hiring such professionals.

According to the contract letter, addressed by Arnold & Porter to Minister Iván Ontaneda, on November 10, 2020, the amount of the “fees” that the firm will charge Ecuador for its professional services is USD 900,000 net of taxes, stamps or deductions.

This document specifies that the payment will be made in three parts: USD150.300 within fifteen days after the first report, USD600.000 within fifteen days after the mid-term report, and the remaining, that is, USD149.700 after of the final report.

The contract is valid until May 31, 2021 and the total amount only includes the fees related to the advice and design of communication strategies by Glover Park Group (GPG).

It should be clarified that the firm cannot make promises or give guarantees that the agreement will be concluded or concluded on terms favorable to Ecuador.

“If the matter does not advance or does not reach the desired conclusion for any reason, the Republic (Ecuador) remains directly responsible for all costs and expenses actually billed by the firm (Arnold & Porter)”.

The Ministry of Production, Foreign Trade and Fisheries reported that “(the firm) was chosen to work with the congress towards a comprehensive agreement” and that the hiring was done “under the regime.”

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