Panama bans Odebrecht contract midst bribery admission

Odebrecht is facing a ban in winning future contracts in Panama unless it cooperates with Panamian authorities.

With Brazil’s Odebrecht having admitted to bribing officials in Panama and other countries to snag government contracts, Panama has stated it will now cancel the contracts awarded to Odebrecht.

Furthermore, it will also not allow the company to participate in public bids.

According to details of a plea agreement that took place in a court in the United States, Odebrecht had doled bribes exceeding $59 million to intermediaries and officials in Panama from 2010 to 2014.

Panama’s government has now disclosed that in the wake of the revelations, it has now decided to cancel the $1 billion contract awarded to Odebrecht to develop a hydroelectric project in the province of Bocas del Toro.

Further, the government of Panama will also force Odebrecht to withdraw from the bidding process to design and build a fourth bridge on the Panama Canal as well as build a Linea 3 metro line.

These steps are designed to compel Odebrecht to cooperate with Panamian authorities failing which Odebrecht will be banned from winning future projects.

When asked to respond to requests for comments, a spokeswoman for Odebrecht did not have an immediate comment.

Categories: Entrepreneurship, HR & Organization, Regulations & Legal, Strategy, Sustainability

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