Brazil: Embraer reaches $205.5 million graft settlement with US

Brazilian planemaker Embraer on Monday reached an agreement with US and Brazilian authorities to settle a six-year corruption investigation, paying $205.5 million to turn the page on signs of graft in four foreign contracts.

Embraer said an internal probe, launched in 2010 after receiving a subpoena in the United States, found evidence of wrongdoing in deals with Saudi Arabia, India, Mozambique and the Dominican Republic in the five years through 2011.

The fine due to US and Brazilian authorities is in line with a $200 million provision Embraer made in July.

The planemaker’s shares slipped 0.5 percent in trading in Sao Paulo after news of the accord, which offers closure in a case that risked prosecution of the company under the U.S. Foreign Corrupt Practices Act.

The company said it is not party to a parallel Brazilian criminal investigation of certain individuals.

Embraer, the world’s third-largest maker of commercial jets, has replaced much of its senior management in recent years, reinforced compliance efforts and curtailed use of third-party sales representatives, who drew suspicion in deals under review.

Full Content: Reuters

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