Major Brazilian firm makes deal on Petrobras
TWO SOURCES SAY ODEBRECHT WAS WORKING ON REVAMPING ITS COMPLIANCE RULES
Engineering conglomerate Odebrecht took out full-page advertisements in Brazil’s main newspapers on Friday to apologise to Brazilians for its involvement in the country’s biggest corruption scandal.
The apology by Latin America’s largest engineering firm was received with scepticism in a country with a history of political corruption and crony capitalism, and many Brazilians expressed their anger at the company on social media.
In a long awaited leniency deal, the family-owned firm signed a 6.7-billion real ($1.94bn) agreement with prosecutors admitting guilt and offering information on bribes paid.
More than 70 executives, including family patriarch and chairman Emilio Odebrecht and his jailed son and former CEO, Marcelo Odebrecht, have agreed to make plea statements.
The bargain will allow Odebrecht to return to bidding for public works projects from which it was banned for its role, along with other engineering firms, in the massive bribe and kickbacks scheme centred on state-run oil firm Petrobras.
The deal has Brazil’s political establishment on edge as plea statements are expected to name as many as 200 politicians who allegedly received graft money from the company.
Prosecutors said Odebrecht had an office dedicated to paying bribes. “Odebrecht recognises that it took part in improper practices … we connived with such practices and did not fight them as we should have .... It was a big mistake,” the company said in its advert, vowing to mend its ways and turn the page.
Two sources briefed on the plan said Odebrecht was working on revamping its compliance rules, which could lead to the appointment of more independent board members and tougher oversight of the family, which controls the conglomerate and its 15 subsidiaries.
The leniency deal, which spreads the fine payment over 20 years, will give Odebrecht a financial breather and help it restructure.