By The Rio Times | Created at 2026-08-30 09:21:34 | Updated at 2026-08-30 12:27:32
4 hours ago
URUGUAY · POLITICS
Key Facts
—What happened: Uruguay’s three opposition parties will file a criminal complaint against Defence Minister Sandra Lazo.
—The charge: They accuse the minister of abuse of functions for cancelling the Cardama patrol-ship contract.
—The backdrop: The 82.2-million-euro (US$95 million) deal collapsed over a fake British performance guarantee.
—The catch: The complaint targets the minister who uncovered the alleged fraud, not the shipyard accused of it.
—Who responds: President Yamandú Orsi says his backing for Sandra Lazo is “absolute”.
—What comes next: Prosecutors must decide whether to pursue the case; no patrol ships arrive before late 2027.
Uruguay’s opposition coalition says it will file a criminal complaint against Defence Minister Sandra Lazo over the cancelled Cardama warship contract. The accusation is abuse of functions, and the political war behind it is two years in the making.
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What the complaint against Sandra Lazo says
On Monday, August 24, three parties announced they will file a criminal complaint against Sandra Lazo. They are the Partido Nacional, the Partido Colorado and the Partido Independiente, together called the Coalición Republicana.
The charge is “abuse of functions”, the crime of a public official who knowingly exceeds lawful powers. In their view, the minister overstepped when the government cancelled a contract to build two warships in Spain.
For the coalition, she “must be held responsible” legally. Lazo answered with a short phrase that dominated Tuesday’s front pages: “We will meet them wherever they want.”
President Yamandú Orsi then weighed in on August 26. He said he had not read the complaint, but that his backing for the minister is “absolute”.
The ship deal at the heart of it
In December 2023, Uruguay ordered two ocean patrol vessels from the Cardama shipyard in Vigo, Spain. Ocean patrol vessels, or OPVs, are long-range ships used to police territorial waters and fishing grounds.
The price was 82.2 million euros (US$95 million). The buyer was the previous government of President Luis Lacalle Pou, with Javier García as defence minister.
The purchase was contested from day one. A confidential navy report had ranked Cardama’s offer last, citing its lack of experience with military vessels, and recommended a Chinese bidder instead.
The head of the navy’s general staff, Rear Admiral Gustavo Musso, asked to retire after the decision. Uruguay’s court of auditors had also warned about the contract’s weak guarantees before it was signed.
The fake guarantee from a dead company
The contract required a performance guarantee of about 4.1 million euros (US$4.8 million) within 45 days. Cardama asked for extension after extension.
What finally arrived was a document from a company called Eurocommerce Limited. Uruguay’s ambassador in London found that the firm had faked its registered address.
Worse, Britain’s official gazette showed Eurocommerce had been in liquidation since August 19, 2025. It was formally dissolved in November.
“We found the surprise that this guarantee did not exist,” Orsi said. “Or worse still, that what we had was a false document.”
How the contract died
On October 22, 2025, Orsi announced the government would rescind the contract and sue. He spoke of “strong indications” of fraud against the Uruguayan state, and prosecutors received civil and criminal complaints against Cardama days later.
By then Uruguay had already paid about US$30 million. In January the state froze further payments after Cardama failed to certify the first ship’s main engines.
A technical audit by Bureau Veritas, an international ship inspector, backed the government’s position. On February 13, 2026, the contract was formally rescinded for “grave breaches”.
Cardama’s owner, Mario Cardama, answered through lawyers. The yard is preparing a multimillion-dollar claim against Uruguay, and international arbitration remains possible.
The politics: who signed what
The opposition argument is that cancellation exposed Uruguay to a costly lawsuit and left the navy without ships. Javier García, who signed the deal as minister, led a Senate grilling of Lazo in December.
The governing Frente Amplio, a left-wing coalition, fires back that the previous administration is responsible. On August 25 it called ex-president Lacalle Pou the “first political person responsible” for the affair.
Parliament has also created a bicameral commission to investigate the purchase. Both chambers will question officials from two governments.
In short, each side wants a court case, but about opposite halves of the story. One targets the cancellation, the other the signing.
What happens next
A criminal complaint is not a charge. Prosecutors must first decide whether the abuse-of-functions claim against the minister justifies an investigation.
The navy’s problem is harder to fix. The first Cardama vessel was due in September 2026, and internal estimates had already slipped to November 2027.
Orsi says Uruguay will have its patrol ships “one way or another”. Talks are under way with shipyards in Colombia, South Korea, India and France, and the United States has offered an interim vessel.
For foreign observers, the case is a test of Uruguay’s reputation for clean institutions. A fake guarantee, a cancelled contract and a minister under fire make an unusual combination for South America’s most predictable democracy.
Frequently Asked Questions
Why will Uruguay’s opposition file a criminal complaint against Sandra Lazo?
The three coalition parties say she abused her functions when the government cancelled the Cardama contract for two ocean patrol vessels. They announced the complaint on August 24, 2026.
What is the Cardama case in Uruguay?
In December 2023 Uruguay ordered two ocean patrol vessels from the Spanish shipyard Cardama for 82.2 million euros (US$95 million). The deal collapsed after the performance guarantee proved fake.
What was wrong with the guarantee?
The 4.1-million-euro (US$4.8 million) guarantee came from Eurocommerce Limited, a company liquidated in Britain. The government calls the document false.
Has Sandra Lazo been charged with a crime?
No. The opposition announced a criminal complaint, but prosecutors have not opened a case against her. President Orsi says his support is “absolute”.
When will Uruguay get its new patrol vessels?
Not soon. The first Cardama ship was due in September 2026, and the government is now talking to shipyards in Colombia, South Korea, India and France.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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