Odebrecht S.A. announced today (21) the execution of an agreement with the Brazilian Federal Prosecution Office, the U.S. Department of Justice and the Swiss Office of the Attorney General to resolve the investigation into the group’s involvement in wrongdoings to benefit companies in its economic group.
Under the agreement, the group’s holding company agreed to reveal wrongdoings unveiled by the internal investigation conducted in Brazil and abroad involving various instances of power, and to plead guilty to violating applicable Brazilian and Swiss laws and, more specifically, the U.S. Foreign Corrupt Practices Act (FCPA). Odebrecht S.A. will pay a fine in the amount of R$3.828 billion to authorities in Brazil, the United States and Switzerland. The amount will be paid over 23 years and the sum of the installments will be adjusted by the variation in the SELIC interest rate. The amount of the fine will draw on resources from a combination of previously planned divestitures and cash generation from continuing operations. In calculating the fine, authorities took into consideration the Company’s full cooperation with the investigation and the extensive remedial measures taken to address Odebrecht’s past compliance failures.
As Odebrecht has previously acknowledged, it deeply regrets its role in the conduct giving rise to this resolution and apologizes for violating its own principles of honesty and ethics. The group reaffirms that it will continue to cooperate with the authorities and to adopt the appropriate and necessary measures to enhance its commitment to ethical business practices and transparency in its actions. Among other things that the group has done to move forward in a positive and productive manner is instituting significant compliance reforms, which include major increases in the personnel and budget devoted to compliance. Odebrecht also has agreed to engage an external and independent compliance monitor for a period up to three years, during which it will continue to enhance its compliance system, in accordance with the terms of the agreement, and to expand the extensive remedial steps that authorities acknowledge the group already has taken.
In addition, Odebrecht has created the Odebrecht Commitment to Act with Ethics, Integrity and Transparency, which will be implemented immediately across all Odebrecht businesses. This Commitment will become a core principle embraced by all Odebrecht Team Members and will guide every aspect of the group’s future.
Odebrecht is grateful for the opportunity to put this painful episode behind it. The group and its Team members will not forget the lessons learned through this experience, which will serve as constant reminders of what is expected as it works to earn back the public’s trust. Odebrecht is eager to turn its attention back to developing and operating projects that work to better communities in Brazil and abroad and to create value for its clients.