Odebrecht Signs Agreement with Government of Peru

"ODEBRECHT" / April 12, 2017 / Jeso Carneiro / Flickr / CC BY-NC 2.0

Odebrecht and the government of Peru signed an agreement which will allow the Brazilian construction conglomerate to operate in the country, according to Reuters.

Two sources told Reutersthat Odebrecht will have to pay an approximately US$180 million fine over 15 years and admit to paying bribes related to four infrastructure projects.

Another source said, “The 15 years’ time frame was established for the payments because Odebrecht is technically bankrupt.”

However, the fine is less than half the amount owed to Peru for illegal cost overruns caused by Odebrecht’s bribes.

“I’ll charge the rest to Odebrecht’s former partners, as well as businessmen, high-ranking government officials, former presidents and former ministers involved,”
prosecutor Jorge Ramirez told Reuters.

The Odebrecht corruption scandal became public in December 2016. Over the course of more than a decade, Odebrecht funneled nearly US$800 million in bribes to officials of foreign governments, state-owned companies, and political parties across Latin America and the Caribbean.

In its investigation, the United States Justice Department found that Odebrecht paid out  US$29 million in bribes in Peru, which resulted in US$143 million in illicit gains. 

Former Peruvian presidents Aljejandro Toledo, Alan Garcia, Ollanta Humala, and Pedro Pablo Kuczynski, as well as the current opposition leader and several local construction companies, are under investigation in connection with Odebrecht’s illegal bribery scheme. All have maintained their innocence.

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