NEW YORK (Reuters) - Brazil-based construction colossus Odebrecht SA and affiliated petrochemical company Braskem SA agreed on Wednesday to pay at least $3.5 billion, the largest penalty ever in a foreign bribery case, to resolve international charges involving payoffs to Brazil’s state oil company and others. Braskem (BAK ) agrees to pay $957M to settle charges that it allegedly hid millions of dollars in illegal bribes paid to Brazilian government officials by falsifying its financial statements, violating the Foreign Corrupt Practices Act, the SEC announces. WASHINGTON (AP) — Brazilian construction conglomerate Odebrecht and major petrochemical company Braskem have agreed to pay a combined penalty of at least $3.5 billion to settle allegations that they bribed government officials in a dozen countries around the world, U.S. authorities said Wednesday. The Brazilian corporations admitted to paying hundreds of millions of dollars in bribes, money that law enforcement officials say was authorized at the highest corporate levels and was concealed through shell companies and offshore entities. The Odebrecht conglomerate pleaded guilty to bribing government officials and political parties to the tune of $788 million to secure business on three continents -- mostly in Brazil, but also 11 other countries in Latin America and Africa. Odebrecht, a key player in the Petrobras corruption scandal gripping Brazil, agreed to a fine of USD 4.5 billion but said it was only able to pay USD 2.6 billion, the US Justice Department said in a statement. The Securities and Exchange Commission alleges Braskem "made approximately $325 million in profits through bribes ... paid to a government official at Brazil's state-controlled petroleum company as well as Brazilian legislators and political party officials," according to a Justice Department announcement. Former Brazilian President Luiz Inacio Lula da Silva, who Brazilian prosecutors say oversaw a scheme in which Odebrecht paid 75 million reais ($22.18 million) in bribes to win eight Petrobras contracts, is among those already charged in Brazil. Michel Temer, Rousseff’s vice president, then took over, but Temer himself has been cited in recently leaked testimony that Odebrecht officials have given, reportedly accused of accepting illegal campaign donations, allegations he has denied.
Brazilian construction firm Odebrecht and affiliated petrochemical company Braskem plead guilty of violating American foreign bribery laws in connection with the Petrobras deal.