GRUPO ODEBRECHT SA

INDUSTRY

Conglomerate

CORPORATE HEADQUARTERS

Salvador, Bahia, Brazil

SUMMARY OF ALLEGATIONS

Nationality of Foreign Officials: Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru, Venezuela

Summary of Allegations:

Between 2001 and 2016, Odebrecht allegedly conspired and agreed with others to corruptly provide more than USD 3.3 billion in bribes, in forms of cash payments and other things of value, to government officials, their relatives and political parties in order to obtain and retain businesses around the world. The bribes were allegedly paid in connection with over 100 projects in Angola, Argentina, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Venezuela and Brazil. For example, Braskem S.A 

To further the criminal bribery and bid-rigging scheme, Odebrecht established the Division of Structured Operations (the "Division"), an elaborate, secrete financial structure, which allegedly operated to account for and disburse bribe payments to foreign government officials and political parties around the world for Odebrecht and its related entities. To conceal its activities, the Division allegedly utilized an entirely separate off-book communications system called "Drousys" that allowed its members to communicate about the bribes via secure emails and instant messages, using code names and passwords. In addition, the Division allegedly managed its "shadow" budget through two computer systems, "MyWebDay," allegedly used for making payments, generating and populating spreadsheets that tracked and internally accounted for the shadow budget. Until approximately 2009, the head of the Division allegedly reported to the highest levels within Odebrecht, including allegedly to obtain authorization to approve bribe payments.  After 2009, this responsibility was allegedly delegated to certain company business leaders in Brazil and the other jurisdictions. 

Under the alleged direction by the highest levels of Odebrecht, the bribe funds were allegedly generated by Odebrecht's Finance Department, as well as some of Odebrecht's subsidiaries, and funneled by the Division to a series of off-shore entities. The Division would then direct the off-shore entities to disburse the funds to bribe recipients. For example, Braskem S.A. ("Braskem"), Brazilian subsidiary of Odebrecht, allegedly paid approximately USD 250 million into the Division's payment system allegedly to authorize bribe payments to politicians and political parties in Brazil, including officials at Petróleo Brasileiro S.A. ("Petrobras"), Brazilian state-owned entity. In exchange, Braskem allegedly received benefits from Petrobras resulting in approximately USD 465 million in corrupt profits. The benefits received by Braskem allegedly included: preferential rates from Petrobras for the purchase of raw materials used by Braskem; contracts with Petrobras; and favorable legislation and government programs that reduced the company’s tax liabilities in Brazil.

In August 2017, the top prosecutors of Brazil and Argentina accused their governments of interfering in the creation of a joint anti-corruption task force to investigate bribes by the Odebrecht engineering group so that politicians, many of whom are under investigation, can themselves control the exchange of evidence.

In October 2017, Venezuela's former attorney general Luisa Ortega, who fled in August, reported in a video posted on her blog that a representative of President Nicolás Maduro in 2013 asked Euzenando Prazeres de Azevedo, an Odebrecht employee who managed the Venezuelan operations of the company, for a USD 50 million payment. Mr. Azevedo said that he agreed to pay President Maduro USD 35 million to continue Venezuela's contracting projects with Odebrecht. The recording in the blog video was made by Brazilian prosecutors in a deposition in December 2016.


Approximate Alleged Payments to Foreign Officials: USD 788 million in bribes (cash payments & other things of value)

Business Advantage Allegedly Obtained: obtain and retain businesses around the world

Nationality of Foreign Officials: Antigua and Barbuda

Summary of Allegations:

In mid-2015, Odebrecht employee allegedly requested that a high-level consular official from Antigua and Barbuda refrain from providing various banking documents to international authorities. The documents allegedly would have revealed illicit payments made by the Division of Structured Operations on behalf of Odebrecht. In return, the Odebrecht employee allegedly agreed to pay USD 4 million to the official and another Odebrecht employee allegedly made thre payments of EUR 1 million on behalf of Odebrecht in order to secure the deal. The fourth payment was allegedly not made.


Approximate Alleged Payments to Foreign Officials: USD 4 million

Business Advantage Allegedly Obtained: to refrain from providing various banking documents to international authorities.

Nationality of Foreign Officials: Argentina

Summary of Allegations:

Ricardo Raul Jaime, former Argentine transportation minister from 2002 to 2009, allegedly was bribed by Odebrecht for a contract to build a large tunnel project for Buenos Aires trains. The former CEO of Odebrecht, Marcelo Odebrecht, allegedly had direct control over negotiations with Jaime.

National Intelligence Agency Director Gustavo Arribas, President Mauricio Macri's spy chief, allegedly received a bribed in the amount of USD 600,000 from Odebrecht. The bribe was allegedly sent as a bank transfer from a Brazilian money changer and it allegedly took place well before President Macri was elected in November 2015.


Approximate Alleged Payments to Foreign Officials: Unspecified

Business Advantage Allegedly Obtained: Unspecified

Nationality of Foreign Officials: Colombia

Summary of Allegations:

Gabriel Garcia allegedly demanded USD 6.5 million from Odebrecht in exchange for cutting out competition and allowing Odebrecht to be the sole participant in the bidding process for a road project that was authorized between 2009 and 2010. Gabriel Garbia was a former deputy transport minister in Colombia during former administration of former President Álvaro Uribe. Former president Uribe publicly denounced Garcia, supported the attorney general's decision against Garcia, and stated that his administration was allegedly deceived by Garcia. The alleged payments to Garcia was allegedly paid through offshore accounts managed by Odebrecht's Department of Structured Operations. Odebrecht allegedly used this division, Department of Structure Operations, to pay bribes and kickbacks.

Odebrecht allegedly also paid USD 4.6 billion to Otto Bula Bula, a former Liberal Party senator in Colombia until 2002, in exchange for Bula's assistance in winning a contract to build the Ocaña-Gamarra highway. Colombian President Juan Manuel Santos' 2014 election campaign allegedly received approximately US 1 million from Odebrecht through Bula. The president's campaign denies the allegations and called for a thorough investigation of the allegations.

Furthermore, Odebrecht allegedly paid consulting fees to a prominent Brazilian political adviser, José Eduardo Cavalcanti de Mendonça, on behalf of Óscar Iván Zuluaga's 2014 presidential campaign. Zuluaga has acknowledged that Odebrecht representatives introduced him to Mendonca but denied the financial contributions to the campaign.


Approximate Alleged Payments to Foreign Officials: USD 6.5 million & USD 4.5 million

Business Advantage Allegedly Obtained: award of public contracts

Nationality of Foreign Officials: Dominican Republic

Summary of Allegations:

Odebrecht admitted to paying USD 92 million in bribes in the Dominican Republic for 17 different contracts, including to build dams and a coal-burning power plant, valued at USD 5 billion. The power plant tender was awarded to ODebrecht despite the bud being the highest and more than USD 500 million above a Congressional limit.

The company hired Angel Rondon to assist it in winning a USD 250 million contract to build an aqueduct. Rondon allegedly opened dozens of business in the Dominican Republic, Panama and the British Virgin Islands. Odebrecht made approximately 100 transfers of more than USD 80 million to those businesses. Rondon then allegedly paid the money to officials to secure contracts for Odebrecht.

Odebrecht also allegedly gave money to a business owned by Joao Santana, the advisor to President Danilo Medina, who used the money to fund election campaigns in five countries.


Approximate Alleged Payments to Foreign Officials: USD 92 million

Business Advantage Allegedly Obtained: USD 5 billion in contracts

Nationality of Foreign Officials: Ecuador

Summary of Allegations:

Between 2008 and 2016, Odebrecht allegedly paid USD 33.5 million in bribes to Ecuadorian officials.

The hydroelectric power plant at Mandariacu was built by Odebrecht and inaugurated by President Rafael Correa in March of 2015. According to the National Anti-Corruption Commission ("CNA"), the original contract for the project was allegedly negotiated for USD 124,881,250 but then later increased to USD 227,389,966, representing a surcharge of 82%.

Vice President Jorge Glas has been accused by senior members of the Ecuadorian government of corruption in connection with the Odebrecht bribery scandal while serving as a minister and vice president for seven years under President Correa. Glas is accused of taking USD 16 million (EUR 13.6 million) in bribes from Odebrecht that paid illegal kickbacks to win public contracts. On 8 November 2017, Ecuador's prosecutor indicted Glas on bribery charges, along with 12 other individuals.


Approximate Alleged Payments to Foreign Officials: USD 33.5 million

Business Advantage Allegedly Obtained: public contracts for hydroelectric power plant at Mandariacu

Nationality of Foreign Officials: Guatemala

Summary of Allegations:

2013 - 2015: Odebrecht representative Carlos Machado allegedly paid bribes totaling 17.9MM USD to former Infrastructure Minister Alejandro Sinibaldi and Guatemala's former presidential candidate Manuel Antonio Baldizonso, so that the company would get the 399.4MM USD dollars tender to build a road in Guatemala. The bribes were paid through seven different offshore financial accounts.

Road construction began in 2013 and stopped in 2015 because the company had only built 33 percent of it and had already received 70 percent of the payment.

 


Approximate Alleged Payments to Foreign Officials: 17.9MM USD

Business Advantage Allegedly Obtained: US$399.4 million dollars tender to build a road in Guatemala.

Nationality of Foreign Officials: Mexico

Summary of Allegations:

As part of its settlement with U.S., Brazilian and Swiss authorities, Odebrecht admitted that it paid USD 10.5 million in bribes to Mexican officials between 2010 and 2014, including USD 6 million to a top official at a Mexican state-owned company. Mexican public records show that the only Mexican state-owned company that had contracts with Odebrecht during that time was Petróleos Mexicanos ("Pemex").

According to media reports in May 2017, Hilberto Mascarenhas, the former head of the Structured Operations division for Odebrecht, testified that he was asked in 2014 to pay USD 5 million in bribes to the then-Chief Executive Officer of Pemex, Emilio Lozoya. It is unknown if the bribe was paid.

Mr. Lozoya has denied requesting or receiving bribes.

In August 2017, former officials of Odebrecht told Mexican prosecutors that the company gave USD 10 million in bribes to Lozoya, partly at a time when he was a top campaign official for President Enrique Peña Nieto.


Approximate Alleged Payments to Foreign Officials: USD 10.5 million

Business Advantage Allegedly Obtained: obtain USD 1.5-2 billion in contracts

Nationality of Foreign Officials: Panama

Summary of Allegations:

Between 2010 and 2014, Odebrecht allegedly paid more than USD 59 million in bribes to Panama to obtain contracts valued at USD 175 million.

Two sons of former Panamanian president Ricardo Martinelli, Ricardo Martinelli Linares and Luis Enrique Martinelli Linares, allegedly received USD 6 million in "commissions" as bribes intended for Martinelli from Odebrecht. 

 


Approximate Alleged Payments to Foreign Officials: more than USD 59 million in bribes

Business Advantage Allegedly Obtained: to obtain contracts valued at USD 175 million

Nationality of Foreign Officials: Peru

Summary of Allegations:

Between 2005 to 2014, Odebrecht allegedly distributed a total of USD 29 million in bribes to public officials in Peru to win a public works contracts. 

Ollanta Humala, Peruvian President from 2011 - 2016, allegedly received USD 3 million in bribes from Odebrecht in exchange for contracts in Peru. Odebrecht has won dozens of contracts worth several billions in Peru in the past decade, including for ports, bridges, roads and a USD 5 billion natural gas pipeline during Humala's term after its sole bidding competitor was disqualified from a public auction at the last minute. Humala and his wife stand accused of receiving some $3 million in bribes from Odebrecht.

Alejandro Toledo, former president of Peru, allegedly received USD 20 million from Odebrecht in exchange for Toledo's assistance in award of a massive bid to build a network of highways between Brazil and Peru.  The contract was valued at USD 600 million and eventually expanded to USD 1.3 billion. Yossi Maiman and Gil Shavit, Israeli businessmen and close associates of former president Alejandro Toledo, allegedly acted as intermediaries for the bribery scheme. Odebrecht allegedly paid the bribe via Maiman's bank account in London, England. In turn, Maiman allegedly paid Ecoteva, Toledo's consulting company. Toledo allegedly used some of the bribe payments to buy a villa in a luxurious Lima neighborhood for USD 3.75 million and two offices in a tower for USD 900,000. Shavit allegedly would have received USD 4 million.

The former governor of Cusco, Jorge Acurio, allegedly received bribes from Odebrecht through Gustavo Salazar Delgado. Former mayor of Lima, Susana Villaran, is alleged to have received USD 4 million in campaign donations from Odebrecht and OAS in 2013, in exchange for the granting of toll road contracts to both companies.

 


Approximate Alleged Payments to Foreign Officials: USD 3 million & USD 20 million

Business Advantage Allegedly Obtained: contracts worth several billion in Peru

Nationality of Foreign Officials: Venezuela

Summary of Allegations:

Odebrecht allegedly paid USD 98 million in bribes to Venezuelan government officials.

Odebrecht allegedly funded at least a portion of Chavez's presidential re-election campaign in 2012. According to the court testimonies by the campaign adviser responsible for the campaign in question, Joao Santana and his wife Monica Moura, the campaign funds allegedly came from accounts established in the Heritage Bank of Antigua & Barbuda belonging to offshore companies like Klienfeld Services and Shellbill Finance SA, corporate fronts allegedly used by Odebrecht in its bribe scheme.Moura has claimed that Odebrecht paid about USD 7 million for Chavez's re-election campaign, paid through Polis Caribe.

 

The cost of the campaign was approximately USD 35 million.


Approximate Alleged Payments to Foreign Officials: USD 98 million in bribes

Business Advantage Allegedly Obtained:

ENFORCEMENT RESULTS

Agencies: Antigua and Barbuda: Unspecified
Results: Prosecution of Public Officials
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

On 23 December 2016, Prime Minister Gaston Browne of the Antigua and Barbuda announced that he has instructed their ambassador in the US to retain immediate legal services to secure the cooperation of the US District Court. The government seeks the US assistance in their investigation into identifying the unnamed government official allegedly involved in the Odebrecht corruption in the Antigua an Barbuda. In the same statement, the prime minister noted that theAntigua and Barbuda government was proactive in its cooperation with the Brazilian and other governments.

On 14 August 2017, Prime Minister Browne confirmed that the Office of the National Drug and Money Laundering Control Policy (ONDCP) are investigating the involvement of local officials in the massive Odebrecht bribery scandal.

 



Agencies: Argentina: Unspecified
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

Gustavo Arribas

In December 2016, prosecutors in Argentina publicly announced that they are investigating whether National Intelligence Agency Director Gustavo Arribas allegedly received a bribe in the amount of USD 600,000 from Odebrecht. Arribas has denied the allegations and disclosed that he had declared all of his bank accounts to Argentine authorities. 

A federal judge in Argentina reportedly will issue a formal request information from Brazil and Switzerland after 21 February 2017 to determine the validity of the allegations. Argentina reportedly seeks to access movements in Arribas' Credit Suisse account from Switzerland and plea bargain testimony from the Brazilian money changer in question.

Odebrecht

The prosecutors in Argentina are also reportedly investigating four projects involving Odebrecht. In February 2017, authorities agreed to conduct a joint investigation with authorities from Brazil, Chile, Colombia, the Dominican Republic, Ecuador, Mexico, Panama, Peru, Portugal and Venezuela.

In August 2017, Argentina's Prosecutor General, with Brazil's Prosecutor General, issued a statement accusing the Foreign Ministry and Brazil's Justice Ministry of interfering in the creation of a joint anti-corruption task force to investigate bribes by the Odebrecht group.



Agencies: Brazil: Ministry of Justice
Results: Conviction, Prosecution of Individuals
Year Resolved: 2016
Compliance Monitor: N/A
Ongoing: No
Details:

Investigation/Prosecution: Marcelo Odebrecht (former CEO of Odebrecht)

On 19 June 2015, Marcelo Odebrecht was jailed and put on trial for criminal association, corruption and money laundering charges he denied.

On 22 February 2016, in a press conference, Brazilian federal prosecutor stated that investigators had evidence Mr. Odebrecht had bribed officials abroad, including a former transportation secretary in Argentina.

On 8 March 2016, following months of trial, Mr. Odebrecht was found guilty of laundering, corruption, taking part in a criminal association and paying more than USD 30 million (21 million euros) in bribes to Petrobras officials and sentenced to 19 years in prison.

In October 2016, media sources reported that by the end of 2016, Brazilian authorities investigating the Petrobras scandal could conclude a leniency agreement requiring Odebrecht to pay fines totaling more than 1 billion Brazilian reais (about USD 318 million) and separate plea-bargain deals that would reduce prison terms Odebrecht executives including Mr. Odebrecht.

On 30 January 2017, Brazil's Supreme Court approved plea bargain statements from 77 current and former employees of Odebrecht. Although the plea bargains are sealed and thus its details are not available to the public, it reportedly includes testimonies implicating allies of Brazilian President Michel Temer in wrongdoing related to the larger corruption probe. As a result of this plea deal, Mr. Odebrecht will be released from jail by the end of 2017 with approval of his testimony and Mr. Odebrecht's father, Emilio Odebrecht, will also provide testimony and serve a sentence, likely in a form of house arrest.

 



Agencies: Brazil: Ministry of Justice
Results: Prosecution of Public Officials
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

Investigation/Prosecution: Ollanta Humala (Former President of Peru)

In November 2015, Peru's Congress authorized investigations into public contracts awarded to Brazilian companies. In February 2016, Humala and two former Peruvian presidents, Alan Garcia and Alejandro Toledo, were called to testify over their knowledge of the Petrobras corruption scheme. On 23 February 2016, Mr. Humala denied taking bribes and said he summoned Brazil's ambassador to his offices late on 22 February 2016 to request official information about the inquiry following initial news reports on the Brazilian court documents.

On 28 March 2016, the judge overseeing Brazil's Car Wash anti-corruption probe disclosed that he has sent a spreadsheet containing names of more than 200 people, including politicians, who's received payments from Odebrecht to Brazil's Supreme Court.  The spreadsheet, dubbed the "Odebrecht list," was discovered from the home of a former Odebrecht executive, arrested in February 2016.  Supreme Court is reviewing the evidence to determine whether additional investigation or trial is necessary.  Elected officials in Brazil receive protection under Brazilian law and can only be investigated by and tried in the Supreme Court.

Peru's general's office said that because of presidential immunity prosecutors would not be able to investigate Humala until after his term ends in late July 2016.

Investigation/Prosecution: Brazilian Officials

In April 2017 the Brazil Supreme Court opened investigations into approximately 100 politicians based on testimony given by former and current Odebrecht executives.  On 25 October 2017, the Brazilian Chamber of Deputies voted not to try President Michel Temer on corruption charges.



Agencies: Brazil: Ministry of Justice
Results: Criminal Fine
Year Resolved: 2016
Compliance Monitor: N/A
Ongoing: No
Details:

Investigation/Prosecution: Odebrecht

On 22 March 2016, executives at Salvador, Brazil-based Odebrecht targeted by Brazilian authorities' probe, stated that Salvador will ask for plea bargain deals with the prosecutors.  The news follows uncovering of systematic corruption at Odebrecht during the raid by the team of investigators on the same day. Uncovered corruption included payment of bribes to work for World Cup soccer stadiums and Olympics legacy projects.

Early October 2016, Reuters reported that Odebrecht is close to reaching a plea deal with the Brazilian authorities. The deal reportedly would include a fine of more than BRL 7 billion (USD 2.2 billion) for the company's role in the Petrobras bribery scandal. The deal is reportedly expected to be formalized by 7 October 2016.

Later in October 2016, the Wall Street Journal reported that by the end of 2016, Brazilian authorities investigating the Petrobras scandal could conclude a leniency agreement requiring Odebrecht to pay fines totaling more than BRL 1 billion (about USD 318 million) and separate plea-bargain deals that would reduce prison terms Odebrecht executives including Mr. Odebrecht.

On 1 December 2016, Odebrecht signed a leniency deal with Brazilian prosecutors. Under the agreement, Odebrecht will pay approximately BRL 6.7 (USD 1.94 billion) over 20 years. The money will be divided between the authorities in the US, Switzerland and Brazil. As a result of the leniency agreement, Odebrecht will be allowed to return to public bidding in Brazil.

On the same day, 1 December 2016, Odebrecht executives, including Marcelo Odebrecht, also signed individual plea bargain agreements. As part of the plea bargain, the executives would become state witnesses and provide the prosecutors with details of bribes paid to Petrobras executives and other state companies and politicians.

On 21 December 2016, in the DOJ's plea agreement with Odebrecht resulting in a criminal fine of USD 4.5 billion, the DOJ noted that Odebrecht has also settled with the Ministerio Publico Federal in Brazil and the Office of the Attorney General in Switzerland. As part of the agreement, the DOJ will credit the amount that Odebrecht pays to Brazil and Switzerland over the full term of their respective agreements, with the DOJ and Switzerland receiving 10 percent each of the principal of the total criminal fine and Brazil receiving the remaining 80 percent. he fine is subject to an inability to pay analysis to be completed by the DOJ and Brazilian authorities on or before 31 March 2017, because Odebrecht has represented it is only able to pay approximately USD 2.6 billion over the course of the respective agreements. 

In February 2017, Brazilian authorities agreed to conduct a joint investigation with authorities from Argentina, Chile, Colombia, the Dominican Republic, Ecuador, Mexico, Panama, Peru, Portugal and Venezuela. In August 2017, Argentina's Prosecutor General, with Brazil's Prosecutor General, issued a statement accusing the Argentine Foreign Ministry and Brazil's Justice Ministry of interfering in the creation of a joint anti-corruption task force to investigate bribes by the Odebrecht group.

According to media reports, Brazilian authority is considering raising the fine that Odebrecht is meant to pay to Brazil.



Agencies: Chile: Public Prosecutor's Office
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

In February 2017, authorities agreed to conduct a joint investigation with authorities from Argentina, Brazil, Colombia, the Dominican Republic, Ecuador, Mexico, Panama, Peru, Portugal and Venezuela.



Agencies: Colombia: National Infrastructure Agency
Results: Restitution
Year Resolved: 2017
Compliance Monitor: N/A
Ongoing: No
Details:

On 12 January 2017, Néstor Martínez, Colombia’s attorney general, announced that Odebrecht agreed to pay nearly USD 11 million as "reparation for the damage caused to the public administration of Colombia."

On 18 January 2017, Luis Andrade, head of Colombia's National Infrastructure Agency, announced that the agency is working towards the definitive exit of Odebrecht from Colombia. The agency requested an arbitration court to void the award of majority control of the Ruta del Sol II road project to Odebrecht. The contract has been valued at COP 5 trillion (USD 1.7 billion).

On 10 February 2017, Colombian prosecutors announced that they will traveled to Brazil in the coming week to look into evidence that Odebrecht bribed politicians and sent funds to presidential campaigns.

On 16 February 2017, Colombian regulators (Superintendence) ordered the nullification of the Ruta del Sol II road project and ordered the National Infrastructure Agency to immediately terminate the contract.

 



Agencies: Colombia: Office of the Attorney General
Results: Plea Agreement, Prosecution of Public Officials
Year Resolved: 2017
Compliance Monitor: N/A
Ongoing: No
Details:

Gabriel Garcia Morales

On 12 January 2017, Gabriel Garcia Morales, former deputy transport minister of Colombia, was arrested for allegedly receiving bribes from Odebrecht. If convicted, Garcia would face up to 20 years in prison.

Over the 14 January 2017 weekend, Garcia plead guilty to charges of bribery, improper signing of contracts, and illicit enrichment.  Garcia will receive a reduction of up to half of the penalty imposed and has been ordered to be transferred to La Picota prison in Bogota.

Otto Nicolas Bula Bula &  Juan Manuel Santos

On 14 January 2017, Otto Nicolas Bula Bula, former Senator of Colombia, was arrested for the adjudication of the Ocaña-Gamarra road in northeastern Colombia to Odebrecht in exchange for USD 4.6 million in bribe payment. Bula faces charges for bribery and illicit enrichment and may also have breached foreign currency exchange rules. Since his arrest, Bula has been collaborating with the Colombian Prosecutor's Office and offering information in connection with the Odebrecht bribery scheme.

On 8 February 2017, Colombian President  Juan Manuel Santos called for a thorough investigation of allegations that his 2014 campaign received USD 1 million from Odebrecht through Bula. On the same day, 8 February 2017, Colombian Attorney General admitted that his office does not have specific evidence to support the allegation but Bula's confession that Bula sent two transfers to Colombia in the total sum of USD 1 million for final beneficiary of Santos' 2014 campaign. 

Óscar Iván Zuluaga

On 7 February 2017, Colombia's National Election Council announced its launch of a formal investigation into the 2014 presidential campaign of Democratic Center candidate Óscar Iván Zuluaga. 

In March 2017, Attorney General Néstor Humberto Martínez announced that there is sufficient proof that Odebrecht covered up USD 1.6 million of Brazilian publicist Duda Mendonca's spending during Zuluaga's campaign, in addition to other illegal financing. The Attorney General further stated that Odebrecht acted as middleman between Zuluaga's campaign leaders and the publicist in February 2014.

Other

On 25 July 2017, Colombia's attorney general announced that Colombian officials received USD 27 million in bribes from Brazilian engineering firm Odebrecht, more than double previously thought, as the company sought to win a road-building contract. Attorney General Martinez said criminal charges for money laundering would be filed against two Brazilian citizens, one Portuguese and three Colombians. He will also ask the Supreme Court of Justice to investigate five congressional lawmakers. Seven people, including a former senator and an ex-vice minister of transport, have been jailed for involvement in the corruption scandal.

On August 14, 2017, Bernardo Elías Náder, a member of Colombia’s ruling Party of the U, was detained by police. Elias faces trial after investigators discovered that he may have received more than 17 billion Colombian pesos (USD 5.6 million) in bribes relating to the Odebrecht corruption case. Elias now faces charges of aggravated criminal conspiracy, bribery, money laundering, and influence relating to the creation of contracts. The Colombian Supreme Court of Justice ordered that President Juan Manuel Santos, along some of his Ministers and former Ministers in his cabinet, appear before the Supreme Court and issue statements. 



Agencies: Colombia: Office of the Attorney General
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

In February 2017, authorities agreed to conduct a joint investigation with authorities from Argentina, Brazil, Chile, the Dominican Republic, Ecuador, Mexico, Panama, Peru, Portugal and Venezuela.



Agencies: Dominican Republic: Unspecified
Results: Prosecution of Individuals, Prosecution of Public Officials
Year Resolved: 2017
Compliance Monitor:
Ongoing: No
Details:

In February 2017, authorities agreed to conduct a joint investigation with authorities from Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Panama, Peru, Portugal and Venezuela.

On 19 April 2017, a Dominican court approved a USD 184 million fine on Odebrecht as part of a plea agreement with Dominican officials. Odebrecht agreed to provide evidence corroborating the bribery allegations, as well as a list of Dominican officials who accepted bribes from Odebrecht.

In June 2017, a number of people were arrested in connection with the case, including Angel Rondon, a lobbyist for Odebrecht who allegedly oversaw the USD 92 million bribe payments from the company to Dominican officials, as well as the former public works minister, the trade minister, three legislators and other national politicians.One of the persons arrested was a member of the commission appointed by the president to investigate the increasing costs of a coal-burning power plant.

In June 2017, Rondon was ordered to spend one year in prison before facing trial, while others were ordered to six to nine months in prison, house arrest, or released on bail. Trial is expected to begin in February 2018.



Agencies: Ecuador: Department of Justice
Results: Suspension/Debarment
Year Resolved: 2017
Compliance Monitor: N/A
Ongoing: No
Details:

Odebrecht

On 23 December 2016, Ecuadorian authorities raided the Guayaquil offices of Odebrecht. During the raid, authorities seized materials including folders, laptops and external hard drives as part of an open investigation.

In awake of the investigation, in December 2016, Ecuadorian President Rafael Correa defended Odebrecht's contracts for the hydroelectric power plant at Mandariacu. Through his social media accounts, Correa indicated that the "relevant contracts are not inflated" and the contracts were audited. In January 2017, Correa continued to claim lack of corruption in the award and that the investigation would be used against him political and geopolitical.

On 3 January 2017, the Ecuadorean government announced that Odebrecht will be barred from any future contracts with public institutions in Ecuador. The Ecuadorean authorities will continue to investigate the alleged corruption.

In February 2017, Ecuador authorities agreed to conduct a joint investigation with authorities from Argentina, Brazil,  Chile, Colombia, the Dominican Republic, Mexico, Panama, Peru, Portugal and Venezuela.

 



Agencies: Ecuador: Unspecified
Results: Prosecution of Individuals
Year Resolved: 2017
Compliance Monitor:
Ongoing: No
Details:

Five individuals were arrested on 2 June 2017, and a number of companies raided, as part of the authorities' investigation into Odebrecht. One of those arrested is reportedly the uncle of Ecuador's Vice President Jorge Glas. The Chief Prosecutor described those arrested as part of a network of organized crime with Odebrecht at the center. The raid turned up cash, jewels, weapons, luxury vehicles and a check from Odebrecht for almost USD 1 million.

On 2 October 2017, Ecuador's Supreme Court ordered the arrest of Vice President Jorge Glas while he is investigated for his role in the Odebrecht corruption scandal, and froze his assets. Investigators have said that he is a key figure in their investigation and that they believe he worked with those accepting bribes. On 13 December 2017, the court found Glas guilty of receiving bribes from Odebrecht and sentenced him to six years in prison. Per Ecuador's constitution, his vice presidency ceased on 3 January 2018, after 90 days of absence from office.



Agencies: Guatemala: Office of the Attorney General
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

Guatemala's Public Ministries conducted a joint investigation with Brazil's public ministries as well as the U.N.-backed International Commission Against Impunity in Guatemala, CICIG. The investigation led to several raids and arrests of individuals in connection with the Odebrecht scheme in Guatemala.

Manuel Antonio Baldizon -

Alejandro Sinibaldi -  wanted on suspected corruption charges stemming from the Odebrecht investigation, is now a fugitive.

January 2018: Odebrecht agreed to pay the Guatemalan government an amount equivalent to 17.9MM USD (the amount paid to Sinibaldi) and to desist from any payment derived from the tender. 



Agencies: Mexico: Prosecutor-General
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

In February 2017, authorities agreed to conduct a joint investigation with authorities from Argentina, Brazil, Chile, Colombia, the Dominican Republic, Ecuador, Panama, Peru, Portugal and Venezuela.

According to media reports, Odebrecht is hoping to come to an agreement with Mexican authorities.



Agencies: Panama: Attorney General, Panama: Unspecified
Results: Suspension/Debarment
Year Resolved: 2016
Compliance Monitor: N/A
Ongoing: No
Details:

Odebrecht

On 27 December 2016, in a statement read by the minister of the presidency, Panamanian government announced debarment against Odebrecht. The contract ban will last until Odebrecht demonstrates full cooperation with the investigation by prosecutors and pays Panama for damages. Panama will also take steps to ensure that Odebrecht withdraws from bidding processes it is currently participating in. Furthermore, the USD 1 billion contract for hydroelectric project in the Bocas del Toro province awarded to Odebrecht in 2014 will be cancelled "at no cost to the state."

On the same day, 27 December 2016, Panamanian prosecutors flew to the US to seek information related to alleged Odebecht bribes to Panamanian officials. 

On 29 December 2016, Panama's attorney general's office announced that it will create a special anti-corruption office to investigate reported corruption related to Odebrecht's case.

On 13 January 2017, Panamanian Attorney General Kenia Porcell announced that the government verbally received a formal commitment by Odebrecht to pay at least USD 59 million as part of the government's probe into the alleged bribe scheme. It was further added, however, that the agreed payment "does not affect the results of the investigations carried out by the prosecutors.” It is unclear as to whether the said payment is a fine or some other form of restitution or punishment. On 1 August 2017, Attorney General Porcell announced that Odebrecht has agreed to pay USD 220 million in fines and will cooperate with investigators probing bribes of Panamanian officials. The fine included USD 100 million for using the banking system for illicit activities.

In February 2017, Panamanian authorities agreed to conduct a joint investigation with authorities from Argentina, Brazil, Chile, Colombia, the Dominican Republic, Ecuador, Mexico, Peru, Portugal and Venezuela.



Agencies: Panama: Audit Office
Results: Prosecution of Public Officials
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

Panama's auditing office is reportedly also investigating Carlos Ho Gonzalez, a former public works official, and other current public works officials with suspicious income surges may also be investigated.



Agencies: Peru: Public Prosecutor's Office
Results: Criminal Fine, Suspension/Debarment
Year Resolved:
Compliance Monitor: N/A
Ongoing: Yes
Details:

In November 2015, Peru's Congress authorized investigations into public contracts awarded to Brazilian companies. In February 2016, former Peruvian president Ollanta Humala and two former Peruvian presidents, Alan Garcia and Alejandro Toledo, were called to testify over their knowledge of the Petrobras corruption scheme. 

On 28 March 2016, the judge overseeing Brazil's Car Wash anti-corruption probe disclosed that he has sent a spreadsheet containing names of more than 200 people, including politicians, who's received payments from Odebrecht to Brazil's Supreme Court.  The spreadsheet, dubbed the "Odebrecht list," was discovered from the home of a former Odebrecht executive, arrested in February 2016.  Supreme Court is reviewing the evidence to determine whether additional investigation or trial is necessary.  Elected officials in Brazil receive protection under Brazilian law and can only be investigated by and tried in the Supreme Court.

In December 2016, President Pedro Pablo Kuczynski publicly called for investigation of Odebrecht employees in Peru to identify the public officials bribes by Odebrecht. The prosecutors are probing potential wrongdoing in Odebrecht's local contracts but they have yet to press charges.

On 27 December 2016, Kuczynski announced that Odebrecht's USD 5 billion 2014 natural gas pipeline contract will be terminated if it was found to have been won through bribes.

On 28 December 2016, Prime Minister Fernando Zavala announced that the Peruvian government is changing public contracting laws to ensure that companies that have been penalized for corruption or that have been admitted to bribing officials will be barred from public procurement. Zavala further announced that the government would determine whether previously awarded Odebrecht contracts would continue on case by case basis.

On 2 January 2017, the attorney general's office announced that Peru has demanded a significant sum of cash from Odebrecht before both parties could move towards a plea deal/final agreement.

On 9 January 2017, the attorney general's office announced that Odebrecht would cooperate with local prosecutors and provide them with details on bribes it paid in Peru. The company also agreed to pay an unspecified amount. Furthermore, Odebrecht must exit the USD 5 billion pipeline project, as a condition of banks that would provide a USD 4.1 billion loan for construction, and Peru would withhold any money Odebrecht might make by selling its 55 percent stake in a natural gas pipeline project. As part of the agreement, Odebrecht deposited an initial USD 8.9 million in public coffers as a gesture of goodwill. Odebrecht has reportedly invested at least USD 1 billion in the pipeline, which was a third finished when halted in 2016.

In February 2017, Peruvian authorities agreed to conduct a joint investigation with authorities from Argentina, Brazil,  Chile, Colombia, the Dominican Republic, Ecuador, Mexico, Panama, Portugal and Venezuela.

29 January 2018: Jorge Ramirez, the Peruvian prosecutor overseeing the Odebrecht case, has demanded that Odebrecht pay Peru reparations in the amount of 3.468 billion soles (around 1.1 billion USD). Ramirez stated that this is the value of the total public damages caused by Odebrecht's bribery.



Agencies: Peru: Public Prosecutor's Office
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

Former Peruvian president Ollanta Humala

On 23 February 2016, former Peruvian president Ollanta Humala denied taking bribes and said he summoned Brazil's ambassador to his offices late on 22 February 2016 to request official information about the inquiry following initial news reports on the Brazilian court documents.

Peru's general's office said that because of presidential immunity prosecutors would not be able to investigate Humala until after his term ends in late July 2016. Prosecutors reportedly have said Humala took illicit funds from Odebrecht but have not pressed charges. Humala has denied any wrongdoing.

Humala and his wife were jailed on 14 July 2017, to be detained up to 18 months while prosecutors pursue money laundering and other charges against them.

President Pedro Pablo Kuczynski

In December 2016, the office of Peru's attorney general reopened a corruption inquiry into whether President Pedro Pablo Kuczynski helped Odebrecht win public work contracts while he served as a prime minister a decade ago. On 22 December 2016, Kuczynski, denied any involvement in the alleged bribes paid to Peruvian public officials by Odebrecht while he was prime minster under former President Alejandro Toledo's administration.

On 6 March 2017, Peruvian prosecutors ordered investigation into Kuczynski's possible link into the Odebrecht corruption. Kuczynski underwent half a day of questioning by prosecutor Hamilton Castro on 28 December 2017.

Former President Alan Garcia

On 6 March 2017, Peruvian prosecutors ordered investigation into Alan Garcia for suspicion that Garcia allegedly accepted a bribe for awarding Odebrecht a contract to build an underground train line. Garcia denies the allegations.

Edwin Luyo & Jorge Cuba

On 20 January 2017, Peruvian police detained Edwin Luyo. Luyo would be released on the 21 January 2017 unless prosecutors requested and received more time from a judge. Luyo led a comittee to auction off the Lima metro construction contract in 2009 during the administration of former president Alan Garcia in Peru. The police had also raided the home of Jorge Garcia, former vice minister of communication for Garcia, but failed to detain Cuba.

Former president Alejandro Toledo

On 4 February 2017, Peruvian authorities searched a house owned by former president Toledo in Lima, Peru. The raid reportedly followed the detection of USD 11 million transferred to Toledo's associate. The money is allegedly part of the USD 20 million bribe Odebrecht allegedly paid to Toledo for his alleged assistance in securing infrastructure contract during Toledo's 2001 to 2006 term. Speaking to the Peruvian press from Paris, France, Toledo claimed to be a victim of "political persecution" and that he had already been investigated without any solid evidence against him.

On 8 February 2017, prosecutors in Peru requested the arrest and imprisonment of Toledo for 18 months of "preventive custody" pending a full investigation of the prosecution's case. The charges against Toledo include influence peddling and money laundering. On the next day, 9 February 2017, the judge granted the request and issued an international warrant for Toledo. Toledo failed to turn himself into the authorities and a reward of PEN 100,000 (USD 30,000) for any information leading to Toledo's arrest has been offered. 

On 11 February 2017, Peru reportedly has been informed by US authorities that they were not planning on preventing Toledo from boarding a flight to Israel from California and detaining him. According to Peruvian officials, the US authorities requested more information on the case against Toledo before they agree to detain Toledo. Peruvian authorities are reportedly rushing to send investigation documents to the US. In a statement released by Israel's Foreign Ministry, Toledo will not be allowed into Israel until his affairs in Peru are settled. 

Toledo's wife reportedly has a dual Belgian-Israeli citizenship and Toledo reportedly has a long friendship with Israeli businessman who alleged acted as a middleman for the alleged bribes. Peru has an extradition treaty with the US but does not have one with Israel.

Jose Alejandro Grana and Hernando Alejandro Grana, who once led Peruvian construction company Grana y Montero, and Fernando Gonzalo and Jose Fernando Castillo, two private contractor executives, were detained pending trial on 4 December 2017. Gonzalo Ferraro, a former Grana y Montero manager, was ordered to be placed under house arrest. Prosecutors accused the men of providing $15 million of a $20 million bribe that Odebrecht paid to ex-president Alejandro Toledo to secure the highway contracts that the companies partnered together on. All five men deny any wrongdoing.

Felix Moreno, governor of Callao region

Governor Felix Moreno allegedly accepted a USD 4 million bribe from Odebrecht in exchange fr a contract to build a 5 km highway along the central coast. Part of the bribe allegedly was used to fund part of Moreno's 2014 reelection campaign.

On 8 April 2017, a federal judge ruled that Moreno be placed in prison for 18 months pending his trial on bribery charges.

Jorge Acurio, governor of Cusco

The former governor of Cusco, Jorge Acurio, allegedly accepted USD 1.2 million in bribes from Odebrecht, through Gustavo Salazar Delgado and José Zaragozá, to win a tender in Cusco. On 27 May 2017, Acurio was sentenced to preventive imprisonment of 18 months while the Public Prosecutor investigates Acurio and Gustavo Salazar.

Keiko Fujimori, leader of opposition party

Prosecutors in Peru are investigating opposition leader Keiko Fujimori, leader of the Popular Force party, over suspicions that she received funding for her 2011 presidential campaign from Odebrecht.

 



Agencies: Peru: Public Prosecutor's Office
Results: Prosecution of Individuals
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

In March 2017, Gil Shavit was arrested after he ignored a summons for questioning.

In May 2017, authorities requested preventive detention of Gustavo Salazar Delgado of 18 months.

In November 2017, a Peruvian court barred Villaran from leaving the country for eight months. Prosecutors alleged that Villaran had received USD 4 million in campaign donations from Odebrecht SA and OAS SA in 2013, in exchange for granting of toll contracts that year to the two companies. 



Agencies: Portugal: Unspecified
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

In February 2017, authorities agreed to conduct a joint investigation with authorities from Argentina, Brazil, Chile, Colombia, the Dominican Republic, Ecuador, Mexico, Panama, Peru and Venezuela.



Agencies: Switzerland: Office of the Attorney General
Results: Plea Agreement
Year Resolved: 2016
Compliance Monitor: N/A
Ongoing: No
Details:

Investigation/Prosecution: Odebrecht

On 21 December 2016, in the DOJ's plea agreement with Odebrecht resulting in a criminal fine of USD 4.5 billion, the DOJ noted that Odebrecht has also settled with the Ministerio Publico Federal in Brazil and the Office of the Attorney General in Switzerland. As part of the agreement, the DOJ will credit the amount that Odebrecht pays to Brazil and Switzerland over the full term of their respective agreements, with the DOJ and Switzerland receiving 10 percent each of the principal of the total criminal fine and Brazil receiving the remaining 80 percent. he fine is subject to an inability to pay analysis to be completed by the DOJ and Brazilian authorities on or before 31 March 2017, because Odebrecht has represented it is only able to pay approximately USD 2.6 billion over the course of the respective agreements. 



Agencies: United States: Civil Lawsuit
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

In July 2015, two class action lawsuits were filed against Braskem  S.A., alleging that the company, its directors and officers, and Odebrecht S.A. had made false and misleading statements or omissions concerning the company's use of bribes to ensure the purchase of raw materials at reduced prices. Odebrecht was named as a defendant in that case. On 30 March 2017, all claims against Odebrect were dismissed for lack of personal jurisdiction.

On 18 May 2016, EIG Management Co ("EIG") and eight of its managed funds added Odebrecht, Keppel Corporation Ltd, Sembcorp Marine Ltd and Jurong Shipyard Pte Ltd. in its USD 221 million fraud suit against Petrobras filed in the US District Court, District of Colombia, Washington. The suit was initially filed in February 2016. In the filing EIG alleges that the defendants, including Petrobras and Odebrecht, misled the firm to invest over USD 221 million to purchase equity in now-bankrupt Sete Brasil Participacoes SA. EIG further alleges that fraudulently procured investments and proceeds were then used to perpetuate and expand a covert and massive corruption scheme to enrich themselves.

 



Agencies: United States: Department of Justice
Results: Compliance Monitor, Criminal Fine, Plea Agreement
Year Resolved: 2016
Compliance Monitor: 3 years
Ongoing: No
Details:

Investigation/Prosecution: Odebrecht

On 21 December 2016, Odebrecht pleaded guilty to the charges by the U.S. Department of Justice ("DOJ") that Odebrecht conspired to violate the anti-bribery provisions of the FCPA and agreed to pay a criminal fine of USD 4.5 billion. 

As part of the agreement, Odebrecht agreed to continue their cooperation with the authorities, including investigation and prosecution against the individuals connected to the matter. In addition, Odebrecht agreed to retain independent compliance monitors for three years and engage in remedial measures, including terminating and disciplining individuals who participated in the misconduct, adopting heightened controls and anti-corruption compliance protocols and significantly increasing the resources devoted to compliance. 

The DOJ noted Odebrecht's settlement in related proceedings with the authorities in Brazil and Switzerland. The DOJ will credit the amount that Odebrecht pays to Brazil and Switzerland over the full term of their respective agreements, with the DOJ and Switzerland receiving 10 percent each of the principal of the total criminal fine and Brazil receiving the remaining 80 percent. The fine is subject to an inability to pay analysis to be completed by the DOJ and Brazilian authorities on or before 31 March 2017, because Odebrecht has represented it is only able to pay approximately USD 2.6 billion over the course of the respective agreements. 

In reaching the resolution, the DOJ considered following factors: Odebrecht's failure to voluntarily disclose the conduct that triggered the investigation; the nature and seriousness of the offense, which spanned many years, involved the highest levels of the companies, occurred in multiple countries and involved sophisticated schemes to bribe high-level government officials; the lack of an effective compliance and ethics program at the time of the conduct; and credit for each company’s respective cooperation. 

In exchange for Odebrecht's guilty plea and fulfillment of all obligations under the agreement, the DOJ agreed that additional criminal charges against Odebrecht or any of its direct or indirect subsidiaries or joint ventures, with exception to Braskem, relating to the related conduct will not be filed. On the same day, Braskem separately pleaded guilty with the DOJ to one count of conspiracy to violate the anti-provisions of the FCPA and agreed to pay a total criminal penalty of USD 632.6 million. On 26 January 2017, a US judge approved the criminal fine against Braskem. The settlement with Odebrecht was approved by a US judge on 17 April 2017, with Odebrecht paying USD 93 million to the DOJ, USD 116 million to Switzerland and USD 2.4 billion to Brazil.

In related proceedings, Braskem also settled with the U.S. Securities and Exchange Commission ("SEC") on 21 December 2016, the Ministerio Publico Federal in Brazil and the Office of the Attorney General in Switzerland. Braskem agreed to pay: a disgorgement of USD 325 million to the SEC; 70 percent of total criminal penalty to the Brazilian authorities; and 15 percent of total criminal penalty to the Swiss authorities. The DOJ has agreed to credit the criminal penalties paid to Brazilian and Swiss authorities as part of its agreement with Braskem, resulting in payment of USD 94.8 million (15 percent) to the DOJ of the total criminal penalty paid by Braskem.

Former Venezuelan attorney general Luisa Ortega indicated in media reports in October 2017 that she is collaborating with U.S. enforcement authorities regarding allegations of Odebrecht's bribe payments to President Nicolas Maduro.



Agencies: Venezuela: State Prosecutor's Office
Results: Prosecution of Individuals
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

On 26 January 2017, Venezuela's chief state prosecutor announced that an arrest warrant was being sought for an individual presumably linked to the Odebrect case, suspected of taking bribes from Odebrecht. In addition, Venezuela also plans to send an investigator to Brazil and has asked Swiss bank authorities to provide a list of Venezuelans who have received deposits from Odebrecht.

On 12 July 2017, the prosecutor's office announced that it would file charges against Maria Baptista and Elita Zacarias—reportedly the wife and the mother-in-law of former Venezuelan transportation minister Haiman El Troudi.

On 14 July 2017, the country's attorney general, Luisa Ortega, said Venezuela's Supreme Court is halting the investigations. Ortega can no longer issue charges without first going through a judge, a Supreme Court spokesman confirmed to CNN Friday. The spokesman said the Supreme Court hasn't made an official decision on how the case will proceed. (CNN)

In October 2017, former attorney general Luisa Ortega released a video detailing allegations that an Odebrecht representative had paid USD 35 million to President Nicolas Maduro. Media reports indicate that Ortega is communicating with the U.S. enforcement authorities as well.



Agencies: Venezuela: Unspecified
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

In February 2017, authorities agreed to conduct a joint investigation with authorities from Argentina, Brazil, Chile, Colombia, the Dominican Republic, Ecuador, Mexico, Panama, Peru, and Portugal.



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