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Embraer Contracts with India and Saudi Arabia Are Targets of Investigation in the United States
Investigations that have been opened by the government of the United States to establish whether Embraer paid bribes in order to obtain contracts abroad have affected deals that the Brazilian company closed with Saudi Arabia and India.
The company has been under investigation by the United States Justice Department since 2010 when a contract with the Dominican Republic raised the Americans' suspicions. Since then, the investigation has widened to examine business dealings with eight more countries.
Embraer is cooperating with the investigations and announced in July that it was expecting to reach a deal soon with American authorities. The company has put US$ 200 million (R$ 642 million) aside to pay any eventual fines that come about as a result of the process.
The company has not released details regarding the state of the investigations, but three people who have been following the case have confirmed to Folha that the deals concluded in Saudi Arabia and India are being examined.
In both cases, suspicions were underlined in May of this year when an employee with more than 30 years at the company reached a plea-bargain agreement in investigations being conducted by the Federal Public Prosecutor's Office here in Brazil.
Albert Phillip Close, Manager of Embraer's defense area, told Prosecutor Marcello Miller that he had heard a former sales director who worked in Europe admit to American investigators the payment of commissions to facilitate the sale of aircraft to the Saudis.
In November of 2010, the company announced the delivery of two Embraer 170 executive jets to the Saudi Arabian state-owned oil company Aramco. The amount of the deal was not announced at the time.
In the case of India, the plea bargainer said that Embraer had contracted a representative to assist in the sale of a surveillance system to the government.
In 2008, Embraer sold three EMB 145 AEW&C (Airborne Early Warning and Control) aircraft to the Indian government. The value of the deal was not announced at the time.
http://www1.folha.uol.com.br/intern...s-of-investigation-in-the-united-states.shtml
Investigations that have been opened by the government of the United States to establish whether Embraer paid bribes in order to obtain contracts abroad have affected deals that the Brazilian company closed with Saudi Arabia and India.
The company has been under investigation by the United States Justice Department since 2010 when a contract with the Dominican Republic raised the Americans' suspicions. Since then, the investigation has widened to examine business dealings with eight more countries.
Embraer is cooperating with the investigations and announced in July that it was expecting to reach a deal soon with American authorities. The company has put US$ 200 million (R$ 642 million) aside to pay any eventual fines that come about as a result of the process.
The company has not released details regarding the state of the investigations, but three people who have been following the case have confirmed to Folha that the deals concluded in Saudi Arabia and India are being examined.
In both cases, suspicions were underlined in May of this year when an employee with more than 30 years at the company reached a plea-bargain agreement in investigations being conducted by the Federal Public Prosecutor's Office here in Brazil.
Albert Phillip Close, Manager of Embraer's defense area, told Prosecutor Marcello Miller that he had heard a former sales director who worked in Europe admit to American investigators the payment of commissions to facilitate the sale of aircraft to the Saudis.
In November of 2010, the company announced the delivery of two Embraer 170 executive jets to the Saudi Arabian state-owned oil company Aramco. The amount of the deal was not announced at the time.
In the case of India, the plea bargainer said that Embraer had contracted a representative to assist in the sale of a surveillance system to the government.
In 2008, Embraer sold three EMB 145 AEW&C (Airborne Early Warning and Control) aircraft to the Indian government. The value of the deal was not announced at the time.
http://www1.folha.uol.com.br/intern...s-of-investigation-in-the-united-states.shtml
