Friday, October 23, 2020

Inter-American Development Bank debars Odebrecht units for massive bribery


The Inter-American Development Bank (IDB) announced Wednesday the six-year debarment of more than 20 subsidiaries of Odebrecht S.A. for bribing public officials in connection with two IDB-financed projects.

The IDB said the debarred Odebrecht units are CNO S.A. and Odebrecht Engenharia e Construção S.A., as well as 19 CNO subsidiaries.

CNO branches in Africa weren’t debarred.

Between 2007 and 2015, Odebrecht companies paid $118 million in bribes on two IDB-funded projects, “utilizing a complex network of agents and offshore financial payment schemes.”

- Advertisement -

The projects were the Highway Rehabilitation Program in São Paulo, Brazil and the Tocoma Hydroelectric Power Plant Program in Venezuela.

The bribes amounted to about six percent of the value of Odebrecht’s contracts under the projects.

In reaching the negotiated settlement, Brazil-based Odebrecht didn’t contest the IDB’s evidence.

The company also agreed to make a total contribution of $50 million directly to NGOs and charities managing social projects in “the IDB’s developing member countries.”

Related: New Odebrecht leaks reveal US$15.7m of bribes tied to Argentina
- Advertisement -

Odebrecht’s contributions will start in 2024, the IDB said.

The Washington, DC-based IDB is the biggest development finance lender in Latin America and the Caribbean. It has 48 member countries, including 26 borrowers.

In late 2016, Odebrecht agreed to pay criminal penalties of at least $2.6 billion for a global corruption settlement with authorities in the United States, Brazil, and Switzerland.

Odebrecht was supposed to pay ten percent of the penalties to the United States to resolve FCPA violations. But within months of the global settlement, Odebrecht lost big contracts it had for construction projects with the governments of Peru, Colombia, and Panama. In April 2017 the DOJ agreed to reduce the U.S. share of the global penalties from $260 million to $93 million because of Odebrecht’s inability to pay.

The company filed for bankruptcy protection in New York a week ago. It has debt of about $25 billion.

The IDB said the settlement Wednesday recognized “Odebrecht’s continued cooperation, including internal investigations that are intended to uncover systemic integrity risks to IDB Group-financed activities.”

Odebrecht will report on its compliance program through an independent monitor, the IDB said.

The debarments qualify for cross-debarment by the World Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, and the African Development Bank.

A list of all Inter-American Development Bank debarred entities and individuals is here.


Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Texas attorney general Ken Paxton fires top aide who accused him of bribery

Lacey Mase, one of the top aides who accused Texas Attorney General Ken Paxton of crimes including bribery and abuse of office, has been fired, she told The...

Fundraiser Elliott Broidy pleads guilty in foreign agent case linked to 1MDB

Major Republican Party and Trump fundraiser Elliott Broidy pleaded guilty Tuesday to acting as an unregistered foreign agent, admitting to accepting millions...

Germany issues international arrest warrant for founders of law firm at the centre of Panama Papers

Germany has issued international arrest warrants for the two founders of the firm at the centre of the tax haven scandal exposed by the...

Latest News

This Week

Germany issues international arrest warrant for founders of law firm at the centre of Panama Papers

Germany has issued international arrest warrants for the two founders of the firm at the centre of the tax haven scandal exposed by the...

Rapper Nuke Bizzle charged with COVID-19 relief aid fraud after bragging in music video

A rapper who bragged about defrauding the government’s unemployment program in a music video has been arrested on federal charges of carrying out the...

Former North Macedonia PM linked to new money laundering probe

The Organised Crime Prosecution in North Macedonia on Monday confirmed the arrest of Risto Novacevski – the best man of fugitive ex-prime minister Nikola...

Berkshire Hathaway to pay $4.1m to settle Iran sanctions violation

Berkshire Hathaway Inc. has agreed to pay roughly $4.1 million to settle allegations that a Turkish subsidiary violated U.S. sanctions on Iran. The U.S. Treasury Department on...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks