November 19, 2019

Operation Car Wash investigation results in leniency agreement between Brazilian authorities and construction conglomerate

On November 14, 2019, OAS S.A., a Brazilian engineering and construction conglomerate, entered into a “leniency agreement” with the Advocacia-Geral da União (the Attorney General of Brazil or AGU) and the Controladoria-Geral da União (Office of the Comptroller General or CGU) in connection with the Operation Car Wash corruption investigation.  According to the CGU’s press release, OAS will pay R$ 1.92 billion (approximately US $455 million), of which R$ 720.14 million corresponds to the amount of bribes paid, R$ 800.37 million is disgorgement of the amount gained through the corrupt scheme, and R$ 404.79 is for civil and administrative fines.  The leniency agreement was negotiated over the course of about 11 months, during which OAS cooperated in the investigation by providing information and evidence about the unlawful conduct of over 400 individuals and entities, according to the CGU.  The agreement requires that the company enhance its compliance program, and provides for full payment by December 2047.  In a public statement commenting on the agreement, OAS said that the company’s new management, in place since March 2018, is focused on professional governance and strengthening its Compliance program, and that its support of the compliance team is “unconditional and unrestricted.”

CGU press release | OAS press release