Brazil's Odebrecht, Affiliate, to Pay at Least $3.5 Billion to Settle Bribery Case -- Update

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)

Petroleo Brasileiro ADR (NYSE:PBR)
Historical Stock Chart
From Aug 2024 to Sep 2024