As part of the advocacy process, Odebrecht agreed to maintain an independent compliance monitor for three years and to adopt and implement a compliance and ethics program. Initially, the monitoring was scheduled to end on February 20. SAO PAULO, Feb 5 (Reuters) – The scandalous Brazilian conglomerate Odebrecht SA has said it is ready to extend surveillance by the U.S. Department of Justice in its corruption plea after certain conditions of the deal were not met, according to court documents. www.wsj.com/articles/brazils-odebrecht-agrees-to-extend-monitorship-for-another-nine-months-11580859505 Odebrecht S.A. (Odebrecht), a global construction group based in Brazil, and Braskem S.A. (Braskem), a Brazilian petrochemical company, pleaded guilty today and agreed to pay a total fine of at least $3.5 billion to settle charges with authorities in the United States, Brazil and Switzerland stemming from their plans to pay hundreds of millions of dollars in bribes to government officials around the world. According to prosecutors, the company has until November 16 to fulfill the obligations arising from the expanded plea. Braskem, whose American Depositary Receipts (ADRs) is the subject of public exchanges on the New York Stock Exchange, pleaded separately guilty of a single criminal information material filed in the Eastern District of New York, accusing him of conspiracy in violation of FCPA`s anti-corruption rules. Braskem agreed to pay a total fine of $632 million.
No convictions have yet been foreseen. In the corresponding proceedings, Braskem also settled its accounts with the U.S. Securities and Exchange Commission (SEC), the Federal Ministerio Publico in Brazil and the Federal Prosecutor`s Office in Switzerland. Under the SEC resolution, Braskem agreed to a profit distribution totalling $325 million. Braskem agreed to pay 70% of the total fine to the Brazilian authorities and agreed to pay 15% to the Swiss authorities. The department agreed to credit the punitive sanctions that were paid to the Brazilian and Swiss authorities as part of their agreement with the company. The United States receives $94.8 million, or 15 percent of the total fines paid by Braskem. Under the agreement, the company could expect possible criminal prosecution if it is found to be in violation of the plea agreement. In a letter last month to the Brazilian company`s attorney general, U.S. attorneys said the company had failed to comply with the plea obligations.
Prosecutors said the company did not accept the monitor`s recommendations and did not implement a compliance and ethics program to prevent and detect violations of certain anti-corruption laws. Letter DOJ ` Pleas or Pleas DOJ press release (2016) Odebrecht pleaded guilty in 2016 to a criminal charge of alleged conspiracy against U.S. foreign bribery laws and entered a plea with the DOJ. The company allegedly paid hundreds of millions of dollars in bribes to officials in Brazil and abroad to secure lucrative infrastructure contracts between 2001 and 2016, according to the plea agreement. On January 29, 2020, the U.S. Department of Justice and Odebrecht S.A. sent a joint letter to the U.S. District Court for the Eastern District of New York, in which they told the court that the parties had agreed to have Odebrecht`s plea for approximately nine months resupport.