Mexican power utility says WhiteWater Midstream being probed over contracts

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MEXICO CITY, July 16 (Reuters) - U.S. firm WhiteWater Midstream LLC is under investigation in Mexico and the United States for possible corruption in its contracts with Mexico's state-run power utility, the utility said in statement on Friday.

WhiteWater is being investigated for the "delivery of contracts under suspicion of corruption, breach of trust and influence peddling," the Comision Federal de Electricidad (CFE) said in its statement.

WhiteWater Midstream and its subsidiaries were awarded multi-million dollar contracts by the CFE between 2016 and 2017. One such contract for a gas pipeline in the United States was "unnecessary for the purposes and needs of the CFE," the utility said. The contract was awarded without a transparent and competitive bidding process, the statement said.

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There are also former CFE officials under investigation, the utility said.

"CFE will exercise, in accordance with its own right, legal actions both at the civil and criminal level in Mexico and the United States," the statement said.

WhiteWater did not immediately respond to a request for comment.

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Reporting by Cassandra Garrison and Noe Torres; Editing by Kim Coghill

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