When intermediaries fall short: A lesson for intermediaries

Citing the case of a Colombian oil company that had to pay a $1.3 billion settlement after it was found to be a conduit for Colombian cocaine shipments, National Geographic published a feature titled “When intermediaries fail.” 

The article explained how Colombian companies were using intermediaries in ways that could lead to “a huge economic impact,” which would include “higher prices for goods and higher prices for consumers.”

The article noted that a Colombia court ruled in December that the Colombian government was liable for “serious” losses due to the oil company’s role in facilitating cocaine shipments.

“Even if the Colombian authorities had not knowingly and intentionally enabled a criminal organization to profit from cocaine shipments in Colombia, their failure to protect the public and ensure that the proceeds were properly spent could amount to a crime,” the article said.

Colombia’s Attorney General’s Office told The New York Times in a statement, “We welcome this ruling and look forward to applying the same principles in other cases, and we will do everything possible to fight against it.”