WASHINGTON, DC: October 25, 2016. Brazilian aerospace manufacturer Embraer has agreed to pay US$107.3 million to resolve bribery charges brought by U.S. and Brazilian government authorities.
The manufacturer has also reached a settlement with both the U.S. Securities & Exchange Commission and Brazil's Ministério Público Federal and Comissão de Valores Mobiliários to pay a further US$98.2 million and US$20 million respectively.
Embraer is accused by the U.S. Department of Justice (DoJ) of bribery in the Dominican Republic, Saudi Arabia, Mozambique and India between 2008 and 2010.
According to the DoJ, the manufacturer has acknowledged that in 2008 its executives paid US$3.52 million to a government official in the Dominican Republic to sell eight military aircraft worth US$92 million to the Dominican Air Force.
Also in 2008 a further US$800,000 made its way to "a high-level official" at Mozambique's state-owned commercial airline, Linhas Aéreas de Moçambique, in order for Embraer to sell it two aircraft for $65 million.
The next year the manufacturer paid an agent US$5.76 million in order to sell the Indian Air Force three aircraft for US$208 million; and in 2010 its employees paid US$1.65 million "to an official at a Saudi Arabian state-owned company" to secure a contract for three aircraft valued at US$93 million.
The DoJ said Embraer earned profits of nearly US$84 million on the sales.
"Embraer tried to bribe their way into several profitable aircraft contracts around the world," said the FBI's assistant special agent in charge William Maddalena. "Instead of reaping a nice profit, their criminal conduct earned the Brazilian aircraft manufacturer a substantial penalty that more than wiped out their gains from these contracts."
The DoJ said Brazilian authorities have now charged 11 people for their alleged involvement in Embraer's actions in the Dominican Republic, and Saudia Arabia has charged two more individuals.
A company statement acknowledged "responsibility for the conduct of its employees and agents according to the facts ascertained in the investigation. Embraer deeply regrets this conduct."