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12/22/16

The Odebrecht/Braskem case sending shockwaves through Latin America political circles

To begin, check out Reuters on the $3.5Bn fine agreed upon by Brazilian companies Odebrecht and Braskem, after they pleaded guilty to a whole mountain of corruption and bribery charges in a US court this week. But the reaction to the details disclosed so far by the ruling has sent governments all over Latin America into a tizzy, because Odebrecht and Braskem has admitted paying massive bribes to people in governments all over. Here are a few examples:
  • Colombia: U$11m in bribes paid between 2009 and 2014 to secure civil works contracts with government.
  • Peru: Between 2005 and 2014, $29m in bribes paid to government officials, mostly via middleman property development company, in order to win civil works and transport contracts.
  • Venezuela: U$98m in bribes to government officials and middlemen between 2006 and 2015.
  • Dominican Republic: U$92m in bribes to secure civil works contracts with government.
  • Ecuador: Between 2007 and 2008 Odebrecht couldn't get permits for its projects. Then from that time until 2016 the permits were signed off. Odebrecht admits to paying U$33.5m in bribes.
  • Guatemala: An U$18m bribe to win a large scale infrastructure contract.
  • Mexico: $10.5m in bribes between 2010 and 2014.
  • Panama: $59m in bribes between 2010 and 2014.

So far, specific names of people who received bribes have not been released. But those names are bound to flow and when they do, the repercussions are going to be felt by every sector of the political world in all countries. This one is going to be big.