September 24, 2016 / 1:27 AM / in 2 years

UPDATE 1-Mexico's Cemex fires two executives over Colombia land deal

(Adds details from statement)

MEXICO CITY, Sept 23 (Reuters) - Mexican cement maker Cemex said on Friday it had dismissed two senior Cemex Latam executives over suspect payments worth some $20 million relating to a land deal in Colombia.

Cemex said the two were fired after an internal probe found the acquisition of land, mining rights and benefits of the tax-free area where it is building a new cement plant in Maceo, northern Colombia, breached company protocols.

The improper payments were made to a “non-governmental third party”, Cemex added in a statement, without giving more details.

In addition, the chief executive of Cemex Latam and director of Cemex Colombia, Carlos Jacks, a 24-year Cemex veteran, has resigned to facilitate investigations, the company said.

He would likely be replaced in the coming days by Jaime Muguiro, currently chairman of Cemex Latam, it added.

Cemex said it had informed the Colombian Attorney General about the matter and would cooperate as required.

For now, the company said it did not expect the steps underway “to have a material adverse impact on Cemex’s results of operations, liquidity and financial condition.”

The two executives dismissed were the vice president of planning at Cemex Latam and Cemex Colombia and the general counsel for Cemex Latam and Cemex Colombia. The men were not named in the statement. (Reporting by Dave Graham; Editing by Sandra Maler)

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