SUBSCRIBE

Breaking News on Industrial Baking & Snacks

Trends > Sustainability

Braskem in $957m penalty over illicit bribes to Brazilian government officials

Post a comment

By Jenny Eagle+

22-Dec-2016
Last updated on 22-Dec-2016 at 12:17 GMT2016-12-22T12:17:14Z

Braskem manufactures green PE packaging for the F&B industry. Pic: Braskem.
Braskem manufactures green PE packaging for the F&B industry. Pic: Braskem.

Brazilian-based petrochemical manufacturer Braskem has agreed to pay $957m to settle charges it created false books and records to conceal millions of dollars in illicit bribes to Brazilian government officials to win or retain business.

The US SEC (Securities and Exchange Commission) complaint alleged Braskem made approximately $325m in profits through bribes paid through intermediaries and off-book accounts managed by a private company that was Braskem’s largest shareholder. 

Global settlement

Bribes were also paid to a government official at Brazil’s state-controlled petroleum company, as well as Brazilian legislators and political party officials.

In a global settlement with the SEC, the Department of Justice, and authorities in Brazil and Switzerland, Braske m agreed to pay $325m in disgorgement, including $65m to the SEC and $260m to Brazilian authorities. 

It also agreed to pay more than $632m in criminal penalties and fines, and must retain an independent corporate monitor for at least three years. 

Federal Bureau of Investigation

 

As alleged in our complaint, Braskem lacked the internal controls to prevent its use of third parties, off-book accounts and other intermediaries to bribe government officials in Brazil during an eight-year period,” said Stephanie Avakian, deputy director, the SEC Enforcement Division. 

Braskem’s misconduct was exposed through the investigative work of authorities in three countries.” 

The SEC’s investigation is continuing. It is being conducted by Ernesto Palacios and Thierry Olivier Desmet of the FCPA Unit, with assistance from David S. Johnson and Fernando Torres, and supervised by Kara Brockmeyer, chief of the FCPA Unit. 

The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud Section, the Federal Bureau of Investigation, the Brazilian Federal Prosecution Service, the Brazilian Federal Police, and the Office of the Attorney General in Switzerland.

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Related products

Related suppliers

Key Industry Events

 

Access all events listing

Our events, Shows & Conferences...