Odebrecht Corruption & Hearing

[Moderator_02]

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Corruption prosecutor investigating 17 Odebrecht bribery suspects

Posted on January 24, 2017 in Panama

Kenia Porcell makes the probe announcement

Post Views: 66

PANAMA’S  Attorney General, Kenia Porcell   announced on Tuesday, Jan.24, that 17 people linked to the $59 million paid to Panama officials by Odebrecht and  laundered through Swiss  banks   were expected to appear before the anticorruption prosecutor “in the coming hours.”

Porcell ­ who did not specify names ­ detailed that they include three ex­officials of the

government, 13 entrepreneurs ­, eight Panamanians and five foreigners ­ and the private banking officer of a bank.

Mario Martinelli

The list includes the two sons of ex-president Ricardo Martinelli, and his brother Mario.

Members of the DIJ went to the residence of Mario Martinelli Tuesday but did not locate him.

José Nelson Brando, a lawyer for Martinelli, said that his client was not home, but he said

Martinelli is in the country and will appear voluntarily.

Brando asked prosecutors to give him a date when his client could be questioned

http://www.newsroompanama.com/news/panama/corruption-prosecutor-investigating-17-odebrecht-bribery-suspects

[Moderator_02]

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Panama banks named in bribery probe

Posted on January 24, 2017 in Panama

Post Views: 158

THE SWISS Federal Prosecutor’s Office has identified two Panama banks with  accounts in the name of Constructora Internacional del Sur used to move bribery funds  destined for Panama officials, including two sons of ex-president Ricardo Martinelli.

The accounts were opened at Credicorp Bank and at Multibank.

Between 2007 and 2010, these accounts received about $59 million from Swiss banks whose beneficiaries were companies controlled by the Brazilian company Odebrecht, according to the Swiss prosecutor’s office.

Odebrecht has admitted to paying bribes equaling that amount to Panama officials in exchange for state contracts.

Multibank officials said they have been “actively collaborating with the authorities in the investigations they

are carrying out and, therefore, based on current legislation, cannot provide details until such investigations

are concluded.”

Credicorp Bank did not respond to  requests for comment reports La Prensa

http://www.newsroompanama.com/news/panama/panama-banks-named-bribery-probe

[Admin_01]

On 1/4/2017 at 11:05 AM, Admin_01 said:

The above postings related to the Odebrecht corruption and fraud investigation and prosecution now warrant a separate topic of their own. These postings were split out from the "miscellaneous fraud and corruption" topic and placed in this topic that is specific to Odebrecht.

As of today, CL now has three topics related to corruption and fraud:

• related to former President Martinelli, his family and close friends [at http://www.chiriqui.life/topic/843-whats-next-for-martinelli-his-familiy-and-associates]
• related to Odebrecht [at http://www.chiriqui.life/topic/4568-odebrecht-corruption-and-fraud-investigations-prosecutions]
• related to all other investigations and prosecutions, labelled "miscellaneous" [at http://www.chiriqui.life/topic/3097-miscellaneous-corruption-and-fraud-investigations-prosecutions]

 

This is a minor correction of my prior posting on this subject of the organization of topics related to corruption and fraud here on CL. There actually are four (not three) topics related to corruption and fraud. Apologies for omitting the Mossack Fonseca topic. The four are:

• related to Mossack Fonsenca and the so-called Panama Papers [at http://www.chiriqui.life/topic/1912-mossack-fonseca-leak-reveals-elites-tax-havens]
• related to former President Martinelli, his family and close friends [at http://www.chiriqui.life/topic/843-whats-next-for-martinelli-his-familiy-and-associates]
• related to Odebrecht [at http://www.chiriqui.life/topic/4568-odebrecht-corruption-and-fraud-investigations-prosecutions]
• related to all other investigations and prosecutions, labelled "miscellaneous" [at http://www.chiriqui.life/topic/3097-miscellaneous-corruption-and-fraud-investigations-prosecutions]

[Moderator_02]

http://www.prensa.com/in_english/Ciudadanos-congregarse-impunidad-escandalo-Odebrecht_21_4675242436.html

[Moderator_02]

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Ex social security boss questioned over Odebrecht bribery

Posted on January 25, 2017 in Panama

Saez Llorens denies Odebrecht links

Post Views: 72

GUILLERMO Sáez­Llorens, former Social Security (CSS) director,  went to the Special Anti -Corruption Prosecutor’s Office  on Wednesday Jan 25 for  questioning  over the alleged  payment of bribes by Odebrecht.

Sáez­Llorens, is already under investigation by anti -corruption prosecutors over other alleged bribery irregularities during his term in office.

Sáez­Llorens said that he went voluntarily to the Prosecutor’s Office and said that he was not afraid of being questioned.

“I have not participated in anything with Odebrecht. We never had a contractual relationship or a public act with them,” he said.

He added that he went to the Special Anti­Corruption Prosecutor’s Office to find out exactly what this investigation is about reports La Prensa

he also stated that he stopped being linked to the company Promotora y Desarrollo Los Andes in September 2008. That company has been linked to the bribes.

“I was the director of that society when I worked at Grupo Suárez, at the beginning of a project , but I left it in September 2008, long before the last government  began,” he said.

On Tuesday The Public Prosecutor Tuesday ordered the investigation of 17 people in connection with the Odebrecht case, including Sáez­ Llorens.

Odebrecht has admitted to paying $59 million in bribes to local politicians and officials.

Francolini and ex-president Ricardo Martinelli

Meanwhile   Riccardo Francolini , former president of the state owned bank, Caja de Ahorros, who is in preventive detention over his alleged role in a bank corruption scam, took out a full page advertisement to claim non-involvement with Odebrecht and complaining that his detention was “political persecution.

Francolini was a member of the inner circle of ex-president Ricardo Martinelli.

http://www.newsroompanama.com/news/panama/ex-social-security-boss-questioned-odebrecht-bribery-guillermo-saez%C2%ADllorens-former-social-securit

[Keith Woolford]

These are the 17 Panamanian figures who are presumed to be implicated in the Odebrecht bribery case.

http://www.tvn-2.com/nacionales/judicial/Conoce-17-implicados-caso-Odebrecht_0_4675032545.html

Edited January 26, 2017 by Keith Woolford

[Moderator_02]

http://www.prensa.com/in_english/Ciudadanos-piden-alto-impunidad_21_4675992355.html

[Moderator_02]

http://www.prensa.com/in_english/anticorrupcion-Andre-Rabello-ejecutivos-brasilenos_21_4675992360.html

[Moderator_02]

http://www.prensa.com/in_english/Gobierno-entrega-propuesta-Odebrecht-Chan_21_4677492206.html

[Keith Woolford]

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"The project will be developed in the Palo Seco Protected Forest, in the districts of Chiriqui Grande and Changuinola, Bocas del Toro"

This is a great opportunity for the government to cancel a controversial project in a highly sensitive area, which is on the Caribbean slope beyond the ridge that's accessed by the El Pianista trail.

There is an existing hydroelectric project back in the Palo Seco Reserve where I purchased some vehicles about 5 or 6 years ago. It succeeded in being completed without incident and is operational only because it was a joint venture between a conscientious European firm and the Indigenous people who live there. There were strict guidelines concerning environmental impact, restoration of fauna, etc.

[Moderator_02]

http://www.prensa.com/in_english/Gobierno-revisara-proyecto-Chan_21_4678992055.html

[Moderator_02]

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Odebrecht out of 4th bridge bid

Posted on January 30, 2017 in Panama

Post Views: 47

BRAZILIAN construction giant Odebrecht  will not be adding to the over  $9 billion in Panama government contracts after confirming Monday, Jan 30, that it has withdrawn from the pre­qualification process of the tender for the design and construction of the fourth bridge over the Panama Canal.

The decision comes after Odebrecht admitted to paying bribes in Panama og  at least $59 million between 2009 and 2014.

On Dec. 27, the Cabinet Council adopted the necessary measures to stop Odebrecht from pre­qualifying for the tender as a measure to combat corruption. The bridge is forecast to cost $1 billion.

Odebrecht sent a letter to Minister of Public Works Ramón Arosemena to formally inform him of its decision to withdraw from the process.

http://www.newsroompanama.com/business/panama-4/odebrecht-4th-bridge-bis

[Moderator_02]

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Odebrecht Withdraws From Tender for Fourth Bridge Over Canal

The Brazilian construction company has decided to withdraw from the process of prequalification in the tender to design and build a fourth bridge over the Panama Canal.

Tuesday, January 31, 2017

From a statement issued by the Presidency of Panama

The company Odebrecht proceeded to formalize its withdrawal from the prequalification stage in the tender for the design and construction of a fourth bridge over the Panama Canal, based on a decision taken by the Cabinet Council, on December 27, 2016.

Through a letter sent to the Minister of Public Works (MOP), Ramon Arosemena, the company formally announced its decision to withdraw from the process.

http://www.centralamericadata.com/en/article/main/Odebrecht_Withdraws_From_Tender_for_Fourth_Bridge_Over_Canal

[Moderator_02]

http://www.prensa.com/in_english/Eisenmann-fiscalia-especial-ciudadana-Odebrecht_21_4681241830.html

[Moderator_02]

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Odebrecht funded CD campaign guru gets 8 years

Posted on February 2, 2017 in Panama

Joao-Santana

Post Views: 63

AN ODEBRECHT funded  election campaign adviser to CD presidential candidate José Domingo Arias in 2014 was .sentenced  in Brazil on Thursday Feb, 2 to eight years and four months  in prison.

Jose Domingo Arias on the campaign trail

Joao Santana was a  former consultant to the presidential campaigns of Dilma Rousseff and Luiz Inácio ‘Lula’ da Silva.   l

The information was confirmed by the network O Globo.

Santana and his wife, Mónica Moura, returned to Brazil in February 2016 to admit that he had received money from Odebrecht to work on campaigns in Argentina, Angola, Venezuela and Panama.

CD Campaign guru Santana photographed  in Panama

Marcelo Odebrecht, former head of the company that bears his name is serving 20 years in prison for corruption and money laundering.

Recently, he took part in a program which guarantees him a reduction of his sentence in exchange for  absolute cooperation with Brazilian prosecutors.

The sentencing judge said that Joao Santana, together with his wife and four other businessmen, participated in a scheme with which money from Petrobras was paid for political campaigns.

http://www.newsroompanama.com/news/panama/odebrecht-funded-cd-campaign-guru-gets-8-years

[Moderator_02]

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BRIBERY: Ex-president’s home raided

Posted on February 4, 2017 in Panama

Post Views: 201

A TEAM of prosecutors raided the home of former Peruvian President Alejandro Toledo (2001­2006), accused of receiving bribes from Brazil’s Odebrecht in exchange for a public workS contract.

The Public Ministry reported, through its Twitter account, that after the raid “ Documentation found in the oledo house will be evaluated by the prosecutors.”

The special team of the Office of the Public Prosecutor continued for over five hours collecting  documents and putting  them in boxes, while reviewing them carefully, according to Peruvian television.

http://www.newsroompanama.com/news/panama/bribery-ex-presidents-home-raided

[Moderator_02]

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Panama-Peru bribery probe link

Posted on February 4, 2017 in Panama

Porcell and Sanchez

Post Views: 89

PANAMA’S Attorney General Kenia Porcell, who has been widely criticized for her apparent lack of action in response to requests for aid in the Odebrech bribery scandal met in Lima, Peru,  on Thursday Feb 2  with her counterpart Pablo Sánchez, to discuss the investigation

According to information provided by the Public Ministry of Peru, Porcell discussed cooperation  around the investigation carried out in Panama regarding the bribes paid by Odebrecht.

According to La Republica newspaper, the prosecutor was interested in the collaboration agreement signed by the Peruvian judicial authorities with the Brazilian construction company, in  which the company provided information to the Peruvian Attorney General and agreed to pay back the bribes it paid to officials in exchange for contracts.

“I want to further strengthen international collaboration in the area of judicial assistance and information management in those specific cases that are not only occurring in Peru, but have a common denominator in several countries in the Americas  said Porcell.

http://www.newsroompanama.com/news/panama/panama-links-peru-bribery-probe

[Moderator_02]

http://www.prensa.com/in_english/Ejecutivo-Odebrecht-Peru-negocia-Panama_21_4684241530.html

[Keith Woolford]

Ramon Fonseca of Mossack Fonseca links President Varela to the Odebrecht corruption scheme, a few hours after the law offices were raided again.

 

Edited February 9, 2017 by Keith Woolford

[Moderator_02]

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$2.4 million to speed bribery probe

Posted on February 8, 2017 in Panama

Post Views: 106

PANAMA’S Ministry of Economy and Finance has approved the transfer of $2.4 million to the Public Prosecutor’s Office to continue investigations into the payment of bribes by Brazilian construction company Odebrecht.

The transfer of the funds must now be approved by the National Assembly.

“Given the delicacy of the Odebrecht case and its implications, the ministry has carried out the steps to expedite this transfer, following instructions from President Juan Carlos Varela, who has publicly stated his full support for the investigation,” the ministry said in a statement.

On Jan. 24, the Public Prosecutor’s Office ordered the investigation of 17 people for money laundering as part of the investigation.

http://www.newsroompanama.com/news/panama/2-4-million-speed-bribery-probe

[Moderator_02]

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Civil groups push for independent  corruption probe

Posted on February 12, 2017 in Panama

Post Views: 42

CIVIL GROUPS in Panama have launched a campaign to create an independent international commission to deal with the corruption allegations linked to the Odebrecht construction company.

The 22 strong body has posted a petition at change.org, a worldwide platform.

According to the petition, the commission would be organized through the United Nations or the Organization of American States.

It also calls for Comptroller Federico Humbert to carry out audits of all the works that the Brazilian construction company did in Panama. In the last 10 years.

Business organizations are also pressing for a independent investigation.

http://www.newsroompanama.com/news/panama/civil-groups-push-independent-corruption-probe

[Moderator_02]

Moderator commentary: Note that this is an older news article (vintage December 2016). However, it is first source that I have seen that identifies the kickbacks and payoffs by receiving country. I find it interesting that of the nine countries identified (based on sworn testimony by Odebrecht officials to investigators in the USA), Panama is the second highest of the known amounts. Here is a tabulation of the bribes paid by Odebrecht to those nine countries (where the amount is known).

1. Dominican Republic = $92.0M
2. Panama = $59.0M
3. Ecuador = $33.5M
4. Argentina = $25M
5. Guatemala = $18.0M
6. Colombia = $11.0M
7. Mexico = $10.5M
8. Peru = ???
9. Venezuela = ???

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Odebrecht's bribery scandal sends shockwaves across Latin America

Dec 23, 2016

The Brazilian company's corruption case has triggered judicial investigations and prompted denials of involvement from some current and former government officials

Keywords: Odebrecht Brazil Latin America bribery scandal

The admission by Brazilian construction conglomerate Odebrecht that it paid hundreds of millions of dollars in bribes to win infrastructure contracts over the last 15 years has sent shockwaves across Latin America.

Odebrecht, the region’s biggest construction firm, has agreed to pay between $2.6 bn and $4.5 bn in fines after admitting it doled out nearly $800 million in bribes across a total of 12 countries, including 10 in Latin America. US authorities describe it as the largest anticorruption settlement in history.

Here are some of the latest developments:

ARGENTINA

In Argentina, a federal prosecutor has opened a preliminary investigation after Odebrecht admitted to paying $35m in bribes to Argentine officials from 2007 to 2014 to obtain public works projects. During that time, the company won several contracts, including a water treatment plant operated by the state water company AySA and work on a refinery owned by YPF, the state-owned energy company, according to the La Nacion newspaper. 

Other projects included the tunneling of a Buenos Aires rail line and the construction of a rail line to a potassium mine operated by Brazil’s Vale.

On Friday, Argentina’s former planning minister, Julio De Vido, who was the top public works official under former President Cristina Fernandez, said he never accepted any illicit payments from Odebrecht. "We want the alleged intermediaries to be identified and for them to say which officials were paid," said De Vido, who is now a congressman. 

PERU

Odebrecht's involvement has jeopardized projects in Peru and Colombia, especially the Gasoducto Sur Peruano (GSP) natural gas pipeline concession and the Rio Magdalena waterway PPP. However, the Brazilian engineering firm has restated its commitment to sell its controlling stakes so the projects can secure financing.

In Peru, Odebrecht paid $29m in bribes to secure public works between 2005 and 2014, according to the plea agreement. Odebrecht won the $6.5bn GSP contract in 2014, after the only other bidder was disqualified on the day of the auction. Peruvian President Pedro Pablo Kuczynski said the Odebrecht bribes had nothing to do with the GSP. He also said he did not accept money from Odebrecht when he was a cabinet minister from 2004 to 2006.

Odebrecht put its 55% stake in GSP on the block earlier this year. An attempt to sell a controlling share in the concession to Sempra Energy fell through in November, when the government refused to remove an anti-corruption clause. But now Canada's Brookfield is expected to buy at least half of the pipeline before the end of the year. Odebrecht recently sold sell its concessions in the Olmos irrigation project in Peru to Brookfield and Suez for an undisclosed amount. The Brazilian firm is also looking for a buyer for the Chaglla hydroelectric power plant in Peru.

ECUADOR 

On Friday, Ecuadorean authorities raided Odebrecht’s office in the city of Guayaquil, seizing documents, two hard drives and four laptops, officials said. In comments on local radio, prosecutor Galo Chiriboga said authorities were working to learn more about the $33.5m in bribes that Odebrecht said were paid between 2007 and 2016. The payments helped the company win $116m in contracts during that time. "We’re looking to identify names and we want to know where the money went," he said. 

Alexis Mera, President Rafael Correa’s legal secretary, told reporters on Thursday that one of Odebrecht’s biggest contracts in the country involved a project to build a part the metro in the capital city of Quito. Last year, a consortium led by Odebrecht and Spain’s Acciona was awarded the $1.5bn contract.

Odebrecht’s projects in Ecuador also included contracts to work on an expansion of a deepwater port in the city of Manta and the construction of the Pascuales-Cuenca pipeline, among others.

MEXICO

Mexico's civil service ministry SPF and the state-owned oil company Pemex said they will investigate the $10.5m in bribes that the Brazilian firm paid to Mexican officials between 2010 and 2014. Odebrecht earned more than $39m as a result of the bribes. According to the plea agreement, Odebrecht gave $6m in 2013 or 2014 to "a high-level official of a Mexican state-owned and state-controlled company is exchange for the official assisting the company with winning a project."

The plea agreement does not identify specific projects, but the Brazilian builder has a few construction contracts with Pemex. In March 2014, Pemex subsidiary Tag Pipelines granted a $1.2bn EPC contract for the Los Ramones II North natural gas pipeline to a consortium with Odebrecht, Arendal and Techint. In November 2015, Pemex granted a $1.2bn contract to to Odebrecht and ICA Fluor to build a facility at a refinery in the state of Hidalgo. Braskem, meanwhile, is part of the joint venture that operates the $4bn Etileno XXI petrochemical plant.

COLOMBIA

In Colombia, where Odebrecht paid $11m in bribes for public works contracts between 2009 and 2014, the government has asked the attorney general to open an investigation. Transparency Secretary Camilo Enciso told a local radio station that the government will cancel any contract that is tied to a bribe from Odebrecht. The company earned more than $50m from the bribes in Colombia, according to the plea agreement.

Odebrecht won three public works contracts in Colombia during the time period -- the second section of the Ruta del Sol federal highway, the Puerto Boyaca-Chiquinquira highway and the Rio Magdalena PPP. The company recently refused an offer from Mexico's Ideal for 51% of Navelena, the SPV behind the COP2.5tn ($834m) waterway project, but it still got a 12-year $250m loan from Japanese bank SMBC to cover part of the construction.

GUATEMALA

Odebrecht admitted to paying $18 million in illegal payments in Guatemala from 2013 to 2015. The payments helped the company obtain benefits of more than $34 million, according to U.S. authorities. According to the Guatemalan magazine ContraPoder, the company earlier this year suspended its work on the highway project after spending more than 70% of its budget but only completing 30% of the planned work. This week, Guatemala’s communications secretary, Aldo Garcia, said the government would move to cancel the project, which aims to expand the CA 02 highway connecting the cities of Tecun Uman and Cocales.

VENEZUELA

Freddy Guevara, president of Venezuela’s comptroller commission in the opposition-controlled Congress, has said lawmakers will open an investigation into Odebrecht’s admission that it made nearly $100m in illegal payments in Venezuela. Officials from the government of President Nicolas Maduro have not publicly commented on the scandal.

DOMINICAN REPUBLIC

In 2011, a year before Odebrecht started operations in the Dominican Republic, it began paying what would become $92m in bribes by 2014. The company gave the money to an intermediary, with the understanding the funds would make it to a government official. "Through this agreement, Odebrecht was able to influence governmental budget and financing approvals for certain projects in the Dominican Republic," according to the plea agreement. Odebrecht earned more than $163m from the bribes in the Dominican Republic.

PANAMA
Prosecutors in Panama, where some $59 million in bribes were paid, said they plan to travel soon to Washington DC to meet with Justice Department officials to discuss the case, local media reported. Some business leaders have called on the government to prevent Odebrecht from bidding for any additional contracts until a local investigation can be carried out.

 

 

http://www.latinfinance.com/Article/3649698/Odebrechts-bribery-scandal-sends-shockwaves-across-Latin-America.html#/.WKF2W8s8Kf0

[Moderator_02]

Moderator comment: Although this article is reporting about events in Brazil, there is likely to be fallout in the other countries where bribes by Odebrecht officials have been confirmed. As legal decisions start coming down, then there is the possibility of plea bargains as well as immunity from prosecution type deals in exchange for more information.

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Brazil's top judge approves Odebrecht plea deal

Jan 30, 2017

The decision by Brazil Supreme Court President Carmen Lucia Rocha could lead to new revelations about the involvement of politicians and business leaders in the Lava Jato corruption scandal

Keywords: STF Odebrecht Brazil Lava Jato

The president of Brazil’s Supreme Court, Carmen Lucia Rocha, has accepted plea deals from 77 Odebrecht executives, a move that could lead to new revelations about the involvement of politicians and business leaders in the Lava Jato corruption scandal.

The details of the plea agreements have been the focus of intense interest in Brazil, where some testimony has been leaked to the press in recent weeks. One of the widely reported leaks involves alleged statements from former CEO Marcelo Odebrecht about a kickback and bribe scheme with lawmakers and other political leaders.

Some of the testimony is also believed to implicate allies of Brazilian President Michel Temer, threatening to rattle the government at a time when it is struggling to reignite the economy and push through a series of economic reforms.

The testimony will be sent to a prosecutor and is expected to remain sealed, the court said in a statement.

On Monday, Temer said Rocha had acted "correctly" by accepting the plea deals. He did not comment publicly on any testimony in the agreements.

The court’s announcement came on the same day that the one-time billionaire Eike Batista turned himself into Brazilian authorities in connection to the sweeping corruption probe at the state-owned energy company Petrobras.

Batista arrived in Rio de Janeiro on Monday on a flight from New York and was immediately taken into custody. Batista had been considered a fugitive for several days, after he traveled to the US last week before police raided his home in Rio.

"I have to show what is what," Batista was quoted as saying by Brazilian television network Globo before he got off the plane. "It’s time to clarify things."

Police accuse Batista of paying $16m in bribes to the former governor of Rio state, Sergio Cabral, in exchange for his backing of some of Batista’s businesses. Cabral, who served as governor from 2007 to 2014, has denied the charges. He is being held in jail as part of a separate graft investigation.

http://www.latinfinance.com/Article/3657809/Brazils-top-judge-approves-Odebrecht-plea-deal.html?utm_source=outbrain&utm_medium=discovery&utm_content=brazils-top-judge-approves-odebrecht-plea-deal#/.WKF1dss8Kf0

 

[Moderator_02]

http://www.prensa.com/in_english/Comision-genera-diferencias_21_4689491006.html

[Moderator_02]

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400 percent return on bribery investment

Posted on February 13, 2017 in Panama

 

Panama's Cinta Costera, a kickstarter for over $9 billion in contracts

Post Views: 226

By Geovanny Vicente Romero

OVER the last 73 years, Norberto Odebrecht has become the leading construction company in Latin America, active in 27 countries worldwide  and helping a new era of modern infrastructure development in the Americas while gaining a 400% return on bribery “investment”

Geovanny Vicente Romero

It has  built  state-of-the-art highways in Colombia, power plants in Dominican Republic, canals and aqueducts in Ecuador, the metro in Panama City, and hydroelectric plants in Peru.  Odebrecht has also  completed  high-profile development projects in Africa, Europe, and the Middle East.

But behind the business empire lay hidden an entrenched corruption scheme that spread throughout the region.

Odebrecht at the time of his arrest

Under the leadership of the founder’s grandson, Marcelo Odebrecht  (currently jailed) one of the largest ever international corruption scandals was uncovered showing  that Odebrecht used criminal  practices to gain  lucrative public works projects.

A 3-year investigation, known as “Operation Lava Jato” (Car Wash)” began with an inquiry into illegal payments made to executives at  state owned Petrobras, and ended up tarnishing the popularity of Brazil’s then-President Dilma Rousseff, implicating congressmen involved in President’s Rousseff’s controversial impeachment, and tainting former President Lula da Silva.

The investigation got its name because of a network of car service stations that were used to divert illegal payments.

On December 21, 2016, the U.S. Department of Justice published an investigation into Odebrecht, shoeing  the company paid  bribes to public officials from 12 countries.

The company agreed to pay a $3.5 billion the largest bribery fine in history.

At  the start  of 2016, the Brazilian judge behind Lava Jato, Sergio Moro, filed various court orders against Odebrecht executives for corruption charges.

 Fortune magazine named Judge Moro among the World’s 50 Greatest Leaders in 2016.

Brazil has taken great strides in establishing a higher degree of transparency and accountability by embarking upon Lava Jato considered the largest anticorruption investigation in the history of the Americas.

The corruption scandal uncovered political linkages, and in April 2014, the Lava Jato  had  36 people summoned for money laundering and forming a criminal organization, and  30 people had been detained, among them the former director of Petrobras, Paulo Roberto Costa.

Nearly one year later, Minister of the Supreme Court Teori Zavascki reopened the Carwash investigation into 47 politicians suspected of involvement  with Petrobras, among them congressmen and senators.

The media attention and corruption accusations led  Brazil’s  National Development Bank of Brazil to suspend the disbursement of $3.6 billion that had been approved for 16 infrastructure projects in Latin American countries.

Joao-Santana

In Feb. 2016, publicist and political strategist Joao Santana was arrested and accused of receiving money from Petrobras.  Brazilian authorities detained Santana upon his return from the Dominican Republic, where he was advising the victorious reelection campaign for Dominican President Danilo Medina.

Santana, a political marketing and campaign guru  played a key role in electing six presidents across Latin America, and one president in Africa. He was also  an adviser to the failed bid of Jose Dominhgo Arias in Panama.

Santana received millions of dollars from Odebrecht to finance and advise political campaigns in key business  markets.

Swiss authorities uncovered documents indicating some transactions had  been made through a Swiss bank account that Joao and his wife had under the name of an offshoring company called Shellbill,  headquartered in Panama.

The arrest of Santana, “the maker of presidents”, affected leaders from Dominican Republic to Angola. This quid-pro-quo scheme revealed the funding of political campaigns in exchange for awarding Odebrecht significant development contracts.

According to Brazilian media, Joao and his wife Monica Moura admitted that $3 million of the $7 million that Santana’s firms received from Odebrecht were expressly for advisory services to presidential campaigns in Panama, Argentina, and other countries.

Following Brazil  other countries in Latin America have begun investigating the extent of Odebrecht’s corruption schemes.

Below  is a country-by-country  summary of efforts to hold those involved accountable.

ARGENTINA
Bribes Paid: $35 million    Fines: 0 Charged: 0 (1 under investigation)     Detained: 0

Odebrecht paid more than $35 million from 2007-2014 to intermediaries,knowing   that  payments would be made, in to government officials, according to Argentinean newspaper Infobae.

Argentina Prosecutor Federico Delgado decided to investigate the country’s Director of the Federal Intelligence Agency Gustavo Arribas, one of President Mauricio Macri’s closest advisors, to  see if Arribas received $600,000 from Odebrecht. On February 2,  Arribas claimed his innocence before a Congressional Bicameral Intelligence Commission.

COLOMBIA
Bribes Paid: $11 million    Fines: 0  Charged: 2    Detained: 2

According to a report from Colombia’s Attorney General, the Vice Minister of Transport Gabriel Garcia Morales, in the administration of former President Alvaro Uribe, has been detained accused of receiving $6.5 million to guarantee that Odebrecht was selected for the construction of the highway, Ruta del Sol, through Colombia.

During the years 2009 and 2014, Odebrecht paid $11 million in bribes throughout Colombia.

Former Senator Otto Bula was detained for his alleged connection to receiving a $4.5 million bribe in order to secure the contract for the Ocaña-Gamarra highway.

Recently, suspicions emerged about Oscar Ivan Zuluaga the previous presidential candidate for the opposition party Democratic Center who  received financing from Odebrecht for his campaign in Colombia’s 2014 presidential election.

Colombian prosecutors have said that they suspect current  President Juan Manuel Santos, , received money for his 2014 re-election campaign.

DOMINICAN  REPUBLIC

Bribes Paid: $92 million    Fines: $184 million     Charged: 0      Detained: 0

Second only to Venezuela, The Dominican Republic received the largest amount of bribes from Odebrecht.

The company has been constructing major highways and the Punta Catalina thermoelectric plant whose contract was awarded on December 9, 2013 in the amount of the $2.4 billion.

The Punta Catalina Project value was supposedly discounted to $1.9 billion following public outcry.  But, according to documents filed in Dominican courts, for the same construction, a Chinese firm Gezhouba Group submitted a bid to complete the for less than half the cost.

The Punta Catalina hydroelectric power project will be built to utilize coal power, failing to take into account that Dominican Republic is a fragile island vulnerable to the adverse affects of climate change, accelerated by dirty power sources.

Despite the large amount of bribes paid in Dominican Republic, the country has carried out only  a few interrogations that have not led to any formal charges or detentions.

Legal action has been limited to accusations against businessman Angel Rondon as the individual responsible for receiving the $92 million. Photos and videos have emerged indicating a close relationship between Rondon and Dominican President Danilo Medina, and other politicians.

Since the announcement that Odebrecht will pay the Dominican Republic a $184 million fine, little has been reported about the case.  On January 22, this year, Dominican citizens took to the streets with the largest public march against corruption in the country’s history.

PANAMA
Bribes Paid: $59 million (admitted by Odebrecht but estimated at up to $1 billion by financial analysts)    Fines: $59 million (initial guarantee)    Charged: 17    Detained: 3

Odebrecht has a long track record of development projects in Panama totaling more than $9 billion, such as the Metro, Pan-American Highway, Cinta Costera, transmission lines, hydroelectric power plant, and irrigation systems.

Panama’s Attorney General Kenia Porcell has charged 17 people, among them three former government officials, eight local businessmen, five foreigners, and an executive from a local bank, after Switzerland terminated the confidentiality of these clients.

Ex-president Martinelli, flanked by his two sons

Switzerland revealed to Panamanian authorities $22 million deposited in bank accounts of the sons of former President Ricardo Martinelli.

Panama has terminated  the company’s work on the hydroelectric power plant Chan II and eliminated the company from bidding on Metro 3.

President Juan Carlos Varela  has agreed to an investigation into his own administration as well as that of his two predecessors, Martin Torrijos (2004-2009) and Ricardo Martinelli (2009-2014). The founding partners of Mossack Fonseca and a lawyer of the company are in detention and allegations have been made that President Varela received Odebrecht money for his election campaign

PERU
Bribes: $29 million    Fines: $262 million   Charged: 4     Detained: 4

In Peru, Odebrecht has built infrastructure projects including a hydroelectric power plant and hydraulic transfer system linked to $29 million in bribes,  During  the management of presidents Alejandro Toledo (2001-2006), Alan García (2006-2011) and Ollanta Humala (2011-2016).

A former Ministry of Transport & Communications official during the government of Garcia has been detained, along with  former government official Edwin Luyo.  The former Vice Minister of Communications Jorge Cuba, until recently was a fugitive with an international warrant for his arrest.

According to news agency Andina, Odebrecht paid $7 million to Luyo and Cuba. Odebrecht has paid $262 million as a fine for not completing its construction contract of the gas pipeline Gasoducto del Sur.

On February 3, , Jorge Cuba’s wife, was charged with owning 35 percent of the offshore business Oblong International, created in Andorra to receive money from Odebrecht.

According to La República, former President Alejandro Toledo had received $20 million for awarding major highway engineering and construction contracts.  It is thought that this money was deposited in the bank account of Toledo’s friend Josef Maiman.  On February 4, Peruvian prosecutors raided Toledo’s home. And the Odebrecht case threatens to imprison all Peruvian former presidents.

RETURN ON INVESTMENT

According to Switzerland’s Public Ministry, for each $1 million that Odebrecht paid in bribes, the company generated $4 million in profit.

The widespread investigations and fines challenging a culture of impunity and its profitability are a step towards a greater degree of transparency to move the region from the destabilizing effects of endemic corruption.

Geovanny Vicente Romero is a political analyst and lecturer based in Washington, D.C.  He can be reached  on Twitter @geovannyvicentr

http://www.newsroompanama.com/news/panama/odebrecht-400-percent-return-bribery-investment