New Delhi: Brazilian aerospace conglomerate Embraer has evidently agreed to pay $205 million in a bid to settle graft charges the company faces in India and three other countries.
The corruption charges against Embraer sprung in 2008 when it was revealed that the company had allegedly made a payment of USD 5.76 million to India to settle preference for itself in a $208 million deal for three Embraer ERJ-145 aircrafts. The deal was undertaken for Indian Air Force’s Airbone Early Warning and Control System (AWACS).
“The Securities and Exchange Commission (SEC) today announced a global settlement along with the US Department of Justice and Brazilian authorities that requires aircraft manufacturer Embraer SA to pay more than USD 205 million to resolve alleged violations of the Foreign Corrupt Practices Act (FCPA),” an official said about the development.
In the complaint filed by the Securities and Exchange Commission, Embraer allegedly made $83 million in profits alone in bribe as the money then trickled down towards officials in Dominican Republic, Saudi Arabia and Mozambique.
“As alleged in our complaint, Embraer realised significant revenues by surreptitiously using third parties to mask bribes paid to government officials with influence over contracts it was competing to win,” Director of SEC Andrew J Ceresney said.
Of the USD 205 million Embraer will pay for the settlement, $107 million will go to the Justice Department and rest $98 million will go the SEC.
The deal, inked by the United Progressive Alliance (UPA) government, involved the purchase of three EMB-145 planes for $208 million. The first aircraft was delivered in 2011, and the other two were delivered later.