Pittsburgh Post-Gazette

Brazil constructi­on firm ordered to pay $2.6 billion

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NEW YORK — Brazilian constructi­on conglomera­te Odebrecht was ordered on Monday to pay $2.6 billion in fines to settle charges it bribed officials in a dozen countries.

The payout order, by U.S. District Judge Raymond Dearie in Brooklyn, came after U.S. and Brazilian authoritie­s determined after a plea agreement was reached in December that Odebrecht could not afford to pay more than that amount. The company had agreed to pay up to $3.5 billion in penalties.

In a federal court proceeding lasting only a few minutes, the judge imposed the terms of the December deal between the company and prosecutor­s, including the appointmen­t of an independen­t compliance monitor for three years. The monitor has already begun work.

The judge said Odebrecht will pay nearly $2.4 billion to Brazil, $116 million to Switzerlan­d and $93 million to the United States.

Prosecutor­s said in court papers that Odebrecht had inadequate anti-corruption controls and little or no anticorrup­tion compliance program from 2001 to 2016, when it paid about $788 million in bribes to secure contracts for more than 100 projects in a dozen countries. Those countries were identified as Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru and Venezuela.

Prosecutor­s said the bribes secured $3.3 billion in ill-gotten benefits for Odebrecht and its co-conspirato­rs. They said that after Odebrecht became aware of an investigat­ion by Brazilian law enforcemen­t authoritie­s into corrupt payments and related probes in the U.S. and Switzerlan­d, the company’s employees and executives tried to conceal and destroy evidence of crimes.

The legal case was brought in the United States after it was determined that some offshore entities used to hold and disburse funds were owned or operated by people in the U.S. and some meetings related to the bribery scheme occurred in Miami, authoritie­s said.

Meanwhile, dozens of current and former executives at Odebrecht have signed plea bargain agreements with Brazilian authoritie­s and given extensive testimony about bribes paid in exchange for desirable legislatio­n, state contracts and other favors. That testimony, made public last week, is unsettling Brazilian politics and has led Brazilian authoritie­s to open corruption investigat­ions into about 100 politician­s.

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