Samsung Heavy Industries (SHI), a South Korea-based engineering company, will pay 812 million reais (U.S. $149.9 million) in a leniency deal with Brazilian enforcement authorities for acts of corruption and money laundering related to “Operation Car Wash.”
The deal, reached Monday with the Federal Public Ministry, the Federal Comptroller General, and the Federal Attorney General, “concerns practices of corruption and money laundering perpetrated by the company and revealed within the scope of Lava Jato,” the prosecutor’s office said in its press release (translated from Portuguese).
Of the total amount, SHI will return 706 million reais (U.S. $130.3 million) in damages to Brazil’s state-owned oil company Petrobras, while the remaining 106 million reais (U.S. $19.6 million) will be paid in fines to the government. In addition to the fine amount, SHI further committed to updating and improving its governance and compliance policies, including its internal controls, the prosecutor’s office said.
Operation Car Wash is a massive corruption probe surrounding Petrobras, in which it was uncovered some of Brazil’s largest construction and engineering companies received inflated contracts from Petrobras—excess markups that were then used to funnel kickbacks to Petrobras executives and high-ranking politicians. Petrobras, which has claimed it’s a victim of the corrupt acts, said more than $1 billion in funds due to cooperation, leniency agreements, and repatriation have since been returned to it.
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