Brazil seeks to impose exemplary fine of $12.7 billion on Andrade Gutierrez SA

The construction and engineering conglomerate is being probed by Brazilian authorities into alleged payoffs to politicians and government officials by the company to win government contracts, including for Petroleo Brasileiro SA.

Brazilian daily, O Globo has reported citing calculations from members of the country’s Office of the Attorney General and the Office of the Comptroller General, that the Brazilian government seeks to impose a $12.7 billion (40 billion reais) fine on Andrade Gutierrez SA, a construction and an engineering conglomerate as to as settle claims related to the participation in a bribery scheme.

Significantly, O Globo said, future bidding for government contracts will be contingent on paying the fine.

Incidentally, Andrade Gutierrez is one of among 10 companies being investigated, since March 2015, for the “Car Wash Operation,”. Brazilian authorities are probing into kickbacks given by the company’s executives to politicians in return for contracts at state-run enterprises, including Petroleo Brasileiro SA.

Currently, Andrade is negotiating leniency with the authorities to make the terms of the agreement less harsh since it feels the settlement amount is sky high and could potentially lead to its bankruptcy, said O Globo citing anonymous sources with knowledge of the negotiations.

Andrade Gutierrez did not immediately returns calls for comment.

($1 = 3.1557 reais)


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

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