For being an accomplice in a bribe case,
Brazil’s oil company, Petrobras, has been fined $853 million by US and
Brazilian authorities.
Brazil’s oil company, Petrobras, has been fined $853 million by US and
Brazilian authorities.
Brazilian authorities will receive 80 per
cent of the fine, with the remainder will be collected by the Justice
Department and the Securities and Exchange Commission of the US.
cent of the fine, with the remainder will be collected by the Justice
Department and the Securities and Exchange Commission of the US.
The company is accused of covering up
bribes to Brazilian politicians and political parties, the US Justice
Department has announced.
bribes to Brazilian politicians and political parties, the US Justice
Department has announced.
Petrobras executives at “the highest
levels,” including board members, orchestrated hundreds of millions in
bribes “and then cooked the books to conceal the bribe payments from
investors and regulators,” US Assistant Attorney
General Brian Benczkowski said.
levels,” including board members, orchestrated hundreds of millions in
bribes “and then cooked the books to conceal the bribe payments from
investors and regulators,” US Assistant Attorney
General Brian Benczkowski said.
The actions the company admitted to
occurred while Petrobras was traded on the New York Stock Exchange,
giving US authorities jurisdiction over the alleged crimes, the Justice
Department said.
occurred while Petrobras was traded on the New York Stock Exchange,
giving US authorities jurisdiction over the alleged crimes, the Justice
Department said.
Prosecutors say a Petrobras executive directed payments to stop a Brazilian parliamentary inquiry into company contracts.
The executive also allegedly funneled
bribes from company contractors into the campaign of an unnamed
Brazilian politician who had power over where Petrobras could build
refineries.
bribes from company contractors into the campaign of an unnamed
Brazilian politician who had power over where Petrobras could build
refineries.
Petrobras admitted some executives
funneled payments to politicians and political parties, and that the
company failed to keep accurate books and records about property and
equipment, as required by law.
funneled payments to politicians and political parties, and that the
company failed to keep accurate books and records about property and
equipment, as required by law.
Executives also falsely certified
Petrobras financial statements to the US Securities and Exchange
Commission even while they were personally involved in the bribery.
Petrobras financial statements to the US Securities and Exchange
Commission even while they were personally involved in the bribery.
“According to Petrobras’s admissions …
members of the Petrobras Executive Board were involved in facilitating
and directing millions of dollars in corrupt payments to politicians and
political parties in Brazil, and members of
Petrobras’s Board of Directors were also involved in facilitating
bribes that a major Petrobras contractor was paying to Brazilian
politicians,” the statement said.
members of the Petrobras Executive Board were involved in facilitating
and directing millions of dollars in corrupt payments to politicians and
political parties in Brazil, and members of
Petrobras’s Board of Directors were also involved in facilitating
bribes that a major Petrobras contractor was paying to Brazilian
politicians,” the statement said.
As part of the agreement announced
Thursday, Petrobras agreed to continue cooperating within any continuing
investigations into the matter, including actions taken by individuals,
and to make changes to its internal compliance
program.
Thursday, Petrobras agreed to continue cooperating within any continuing
investigations into the matter, including actions taken by individuals,
and to make changes to its internal compliance
program.
The settlement announced Thursday
involved a “non-prosecution agreement,” meaning no charges will be
brought against the company. Prosecutors may separately take action
against individuals.
involved a “non-prosecution agreement,” meaning no charges will be
brought against the company. Prosecutors may separately take action
against individuals.
More than 40 countries including the
United States have criminalized paying bribes abroad to win business,
which authorities say defrauds investors while promoting corruption and
political instability.
United States have criminalized paying bribes abroad to win business,
which authorities say defrauds investors while promoting corruption and
political instability.
In a related matter, Petrobras agreed to
pay $933.5 million to the SEC to return ill-gotten gains, but this sum
will be reduced by the amount of any payments made in a class-action
lawsuit by investors filed in New York.
pay $933.5 million to the SEC to return ill-gotten gains, but this sum
will be reduced by the amount of any payments made in a class-action
lawsuit by investors filed in New York.
