Tuesday, October 25, 2016

Brazilian aircraft manufacturer Embraer to pay $205 million in graft settlement

New York/New Delhi: Brazilian aircraft manufacturer Embraer has agreed to pay over $205 million to resolve charges of corruption and making bribe payments to officials in foreign nations, including $5.76 million allegedly paid to an agent in India in connection with the sale of three military aircraft for Indian Air Force.
The corruption charges in India relate to payment of $5.76 million to an agent in kickbacks for clinching a deal for the sale of three highly specialised military aircraft for the IAF's Airborne Early Warning and Control System.
Embraer entered into the resolution to resolve criminal charges and agreed to pay a penalty of more than $107 million in connection with schemes involving the bribery of government officials in the Dominican Republic, Saudi Arabia and Mozambique, and to pay millions more in falsely recorded payments in India via a sham agency agreement, the US justice department said.
Under the settlement, apart from the $107 million penalty to the justice department as part of a deferred prosecution agreement, Embraer must also pay more than $98 million in disgorgement and interest to the Securities and Exchange Commission.
25/10/16 Times of India