Brazil-based petrochemical giant Braskem said last week in a filing with the Securities and Exchange Commission that it has launched an internal investigation into potential violations of the Foreign Corrupt Practices Act.
Braskem said it is investigating allegations that two of its former executive officers made improper payments between 2006 and 2012 to Brazil’s state-owned oil company Petrobras in exchange for raw-material supply agreements. “To the knowledge of the management, Braskem has not received any notification of the filing of any proceeding or investigation by Brazilian or U.S. authorities,” the company stated.
In response to the allegations, which were made public in lawsuits, the company’s management and board of directors this month approved plans to launch an internal investigation, which will be “carried out by law firms experienced in similar cases in the United States and in Brazil,” the filing stated. “The law firms will work under the coordination of an ad hoc committee formed by members of its board of directors, specially created for this purpose.”
In addition, Braskem said it has self-disclosed the investigation to both Brazilian authorities, as well as the SEC and the Department of Justice.
The company said it cannot estimate the duration or outcome of the investigation. “Management is committed to taking all the necessary measures to clarify the facts,” the company concluded, “and will keep the market informed of any progress on this matter.”