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Brazil wants $12.7 billion fine on Andrade engineering firm: O Globo
October 8, 2017 / 4:34 PM / 2 months ago

Brazil wants $12.7 billion fine on Andrade engineering firm: O Globo

SAO PAULO (Reuters) - The Brazilian government is seeking 40 billion reais ($12.7 billion) from construction and engineering conglomerate Andrade Gutierrez SA to settle claims related to its participation in a graft scheme, newspaper O Globo reported on Sunday.

Citing calculations from members of the Office of the Attorney General and the Office of the Comptroller General, O Globo said the fine is a condition for the signature of a leniency agreement that would allow the firm to continue bidding for government contracts.

Andrade Gutierrez is one of 10 companies being investigated since March 2015 for the “Car Wash Operation,” a probe into kickbacks from company executives to politicians in return for contracts at state-run enterprises, especially Petroleo Brasileiro SA (PETR4.SA).

Andrade is in talks to negotiate the terms of the leniency agreement, but the firm considered the settlement amount too high and likely to lead it to bankruptcy, O Globo reported, citing unnamed sources with knowledge of the negotiations.

Andrade Gutierrez did not immediately reply to emails and calls seeking comment.

($1 = 3.1557 reais)

Reporting by Ana Mano; editing by Grant McCool

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