Argentina sues AES unit in fraud
BUENOS AIRES, Dec 4 (Reuters) - Argentina's power regulatory agency filed a lawsuit against an electricity distribution firm controlled by U.S. power firm AES Corp (AES.N), alleging it defrauded the state, a government source said on Thursday.
The lawsuit, filed before the No. 27 National Criminal and Correctional Court, alleges that AES's Edelap unit in Argentina made improper transfers of debt that left it underfunded but benefited AES units based in neighboring Uruguay, according to official news agency Telam.
A government source, who declined to be named, confirmed that the lawsuit was filed.
The suit comes days after blackouts in large parts of the country during a heat wave.
No one was immediately available for comment at AES in the United States or Edelap Argentina.
The Planning Ministry said in a statement earlier in the week that Planning Minister Julio De Vido had informed the U.S. ambassador that it was considering taking legal action against the company.
"We are planning on meeting with the Government of Argentina in order to clarify this issue ... and look forward to discussing their concerns," AES External Communications Director Meghan Dotter said on Wednesday in an email to Reuters, before the lawsuit was filed.
Edelap distributes power to 295,000 clients in an area of 2,200 square miles (5,700 square km) in the province of Buenos Aires.
AES, one of the biggest energy companies in the world, with operations in 29 countries, owns 90 percent of Edelap. It also has nine power plants in Argentina, representing 10 percent of the capacity in the country, and another distribution company, Edes. (Reporting by Lucas Bergman; Translating by Fiona Ortiz; Editing by Gary Hill)
