Brazil's Odebrecht, Affiliate, to Pay at Least $3.5 Billion to Settle Bribery Case -- Update
December 21 2016 - 2:42PM
Dow Jones News
By Sam Rubenfeld and Luiciana Magalhaes
SÃO PAULO -- Construction giant Odebrecht SA and an affiliate
will pay at least $3.5 billion to U.S., Brazilian and Swiss
authorities to resolve a global investigation into bribes paid
across the world to secure business, prosecutors said
Wednesday.
The settlement, among the largest ever for foreign bribery
charges, also included an agreement in which the company admitted
to "illicit acts," Brazilian prosecutors said.
The settlement pertains to the massive corruption scheme
centered on Brazilian state-controlled oil company Petróleo
Brasileiro SA, or Petrobras, in which executives of Petrobras
colluded with politicians and business executives to secure
contracts in exchange for bribes. The Brazilian investigation into
the Petrobras scandal, known as Operation Car Wash, has led to the
arrests of dozens of business executives, rattled the Brazilian
economy and rocked the country's politics.
Under the deal, Odebrecht will pay at least $2.6 billion and up
to $4.5 billion, the U.S. Department of Justice said. Braskem SA, a
Brazilian chemical company controlled by Petrobras and Odebrecht,
will pay approximately $957 million.
Earlier this month, Odebrecht apologized for its mistakes in a
statement, and acknowledged "its participation in illicit actions"
as part of its business.
"Odebrecht has learned from these mistakes and is evolving," the
statement said.
No individuals are part of the agreement to be struck Wednesday.
But 77 Odebrecht executives started signing plea agreements this
month, a person close to the negotiations has said. One of them was
Marcelo Odebrecht, the jailed former chief executive, who was
sentenced earlier this year to 19 years in prison for corruption,
money laundering and conspiracy.
--Paul Kiernan contributed to this article.
(END) Dow Jones Newswires
December 21, 2016 14:27 ET (19:27 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Petroleo Brasileiro ADR (NYSE:PBR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Petroleo Brasileiro ADR (NYSE:PBR)
Historical Stock Chart
From Sep 2023 to Sep 2024