December 19, 2018

Brazilian construction company signs leniency deal with authorities

The Brazilian Attorney General has announced that Andrade Gutierrez Engenharia, a Brazilian construction company, has signed a leniency deal pursuant to which it will pay BRL 1.49 billion (approximately $381.5 million) to settle corruption allegations. The allegations, which involve 54 public works contracts in Brazil, arose as part of Operation Car Wash, a sprawling investigation that has involved dozens of Brazilian construction companies, including Odebrecht SA and its subsidiary, Braskem SA, which settled corruption charges with American, Brazilian, and Swiss authorities in December 2016 for a record-breaking $3.5 billion fine.  According to Brazilian federal authorities, Andrade Gutierrez must continue to cooperate in the investigation as a condition of the agreement, and has agreed to testify about potential illegal activity involving at least 100 other companies and 250 individuals. The company has also agreed to implement a compliance program under the oversight of the Comptroller General, and to take appropriate personnel action.  In addition, Andrade Gutierrez will be allowed to enter into new contracts with the federal government.  This is the sixth leniency agreement negotiated by  Brazilian enforcement authorities in cases involving public funds.

Attorney General press release | Andrade Gutierrez press statement