PETROPERÚ initiates legal actions against former officials

Since September 2021, when the new Board of Directors of the Company has been appointed, it has been becoming aware of irregular events identified by the Internal Audit and Risks area of PETROPERÚ, the same ones that involve the management of former employees, who did not receive sanction some for the faults committed. Therefore, the new administration of the Company will initiate the corresponding administrative and legal processes, in order to correct the serious situations detected.

Among the events identified is the hiring of legal advisors for an estimated 10 million soles during 2019, which did not comply with the internal regulations established for the selection processes.

Likewise, during the months of June, July and August 2021, variable remuneration was granted to the managers who reported directly to the former General Manager Carlos Barrientos Gonzales, for the supposed fulfillment of goals. In the specific case of the former General Manager, the former Board of Directors of PETROPERÚ approved retroactively granting such variable remuneration; consigning information other than the actual goals achieved.

Another serious situation encountered is the inadequate management of the purchase of hydrocarbons, which would have been generating an overestimation of costs, and distortions in prices.

Similarly, deficiencies were detected in the management of donations corresponding to social management expenses incurred during 2017 and 2018, which caused PETROPERÚ to pay higher income tax.

On the other hand, it was identified that the PETROPERÚ Talent Committee, chaired by the former General Manager, agreed in September 2020 to continue with the staff performance evaluation process, despite the fact that 75% of the evaluations had been manipulated, as well as received more than 300 complaints from the same workers. It should be noted that the result of these evaluations is closely related to special salary assignments or bonuses.

All the aforementioned is added to what previously PETROPERÚ disseminated on some of the reasons for the separation of the aforementioned officials, which were:

• Poor management of the Company's commercial business, which caused the reduction of its market share from 54% in 2019 to 30% in 2021.
• Delay in the start-up of the New Talara Refinery, impacting the investment amount.
• Granting of a credit line to the company Sociedad Peruana de Gas S.A.C. that has generated a debt to the Company for more than 30 million soles, currently without any support.
• Approval by the previous General Manager of the increase of a line of credit to Peruvian Airlines without any guarantee and without being subject to the policies and procedures in force for the management of credits and collections.
• In addition, the reasoning behind the shutdown of the old Talara Refinery for the last two years without an adequate technical report, which has left PETROPERÚ without the ability to refine crude oil to supply the national market, is being investigated.

All these actions were promptly reported to the corresponding levels, however, the Board of Directors and the previous Administration did not take corrective actions.

The PETROPERÚ Board of Directors ratifies its commitment to speed up these administrative and legal processes and obtain exemplary sanctions; as well as continuing to report transparently the actions that it has been undertaking, in order to strengthen Good Corporate Governance and the fight against corruption.

Finally, it reiterates that it will focus its efforts on completing the construction of the New Talara Refinery, recovering the leadership of the hydrocarbon market and continuing to fulfill its role of supplying fuels to the entire country.