ADVERTISING

Latest Photo Galleries

Signs of Tension Signs of Tension

Published on 04/11/2016

Rio: a City in Metamorphosis Rio: a City in Metamorphosis

Published on 11/19/2015

Brazilian Markets

18h17

Bovespa

-0,23% 101.017

16h43

Gold

0,00% 117

17h00

Dollar

-0,31% 5,6130

16h30

Euro

+0,49% 2,65250

ADVERTISING

Embraer Contracts with India and Saudi Arabia Are Targets of Investigation in the United States

09/08/2016 - 13h51

Advertising

WÁLTER NUNES
FROM SÃO PAULO

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.

Translated by LLOYD HARDER

Read the article in the original language

You have been successfully subscribed. Thanks!

Close

Are you interested in news from Brazil?

Subscribe to our English language newsletter, delivered to your inbox every working day, and keep up-to-date with the most important news from Brazil.

Cancel