Latin America: Odebrecht probe claims regional victims
The US Department of Justice reached a record plea bargain with construction giant Odebrecht over bribery charges
Source: US Department of Justice
Outlook
Ongoing Brazilian investigations into the Petrobras corruption scandal (‘Operation Car Wash’) have embroiled Brazil’s leading construction companies, and plea bargains by 77 former executives of Odebrecht could widen the probe further.
In December 2016, Odebrecht and the petrochemical company Braskem (controlled by Odebrecht and Petrobras) pleaded guilty in a US federal court to violating the US Foreign Corrupt Practices Act.
According to the Department of Justice, “during the relevant time period, Odebrecht, together with its co-conspirators, paid approximately $788 million in bribes in association with more than 100 projects in twelve countries”, all but two of them in Latin America, “with ill-gotten benefits to Odebrecht and its co-conspirators of approximately $3.336 billion”.
Impacts
- The fallout from the scandal has virtually derailed Brazilian politics, and the ripple effects will hit other countries.
- Peru’s 2017 GDP growth may fall by 1 percentage point as a result.
- The scandal could affect the Ecuadorian presidential elections in February.
- Both political credibility and prospects for Brazilian recovery and regional infrastructure may suffer.
See also
- Panama ruling clears way for Martinelli election run - Apr 29, 2022
- Mexico's anti-corruption measures remain ineffective - Nov 12, 2021
- Leak poses challenges for Dominican president - Oct 18, 2021
- Mexico’s Lozoya scandal to boost Morena mid-term hopes - Sep 21, 2020
- Abinader faces major challenges in Dominican Republic - Jul 7, 2020
- Mexico extradition to boost AMLO's anti-graft image - Jul 1, 2020
- COVID-19 scandals to foster frustration in Panama - May 19, 2020
- Mexico corruption scandals could spiral - Feb 14, 2020
- Panama constitutional reform will be contentious - Nov 27, 2019
- Campaign finance constraints boost corruption in Peru - Nov 26, 2019
- Brazil corruption claims may mar pensions prospects - Sep 20, 2019
- Corruption and constitution challenge Panama’s Cortizo - Jul 30, 2019
- Garcia's death will not revive APRA's fortunes in Peru - Apr 23, 2019
- Medina moves towards Dominican Republic re-election - Apr 2, 2019
- Latin America political inequality is set to increase - Dec 12, 2018
- Graft scandal undermines Dominican re-election plans - Oct 1, 2018
- Private funds to underpin Ecuador infrastructure push - Sep 19, 2018
- Petrobras Brazil outlook improves but challenges loom - Jul 25, 2018
- Electricity plan to boost Dominican economy - May 14, 2018
- Under-attended Latin America/US summit underachieves - Apr 17, 2018
- Odebrecht claims complicate former Argentine minister - Apr 4, 2018
- Latin America's multilatinas face slower future growth - Mar 12, 2018
- Brazil's former Petrobras CEO jailed as probe widens - Mar 8, 2018
- Spain's waning Latin America influence may regain pace - Feb 23, 2018
- Peru's growth will disappoint again this year - Feb 19, 2018
- Prospects for Central America/Caribbean in 2018 - Nov 27, 2017
- Odebrecht report will fan public ire in Latin America - Nov 9, 2017
- Prospects for the Andean region in 2018 - Nov 7, 2017
- Costa Rica scandal cements election corruption impact - Nov 1, 2017
- Brazil's Odebrecht seeks to halt Venezuela revelations - Oct 19, 2017
- Foreign investment may eschew capacity rises in Brazil - Sep 15, 2017
- Corruption pressure will build on Panama’s Varela - Aug 23, 2017
- Infrastructure will not boost near-term Brazil growth - Aug 21, 2017
- Cracks will extend within Ecuador’s ruling party - Aug 10, 2017
- Corruption could define Moreno's presidency in Ecuador - Jul 11, 2017
- Fire investigations will harm Guatemala’s Morales - Jun 20, 2017
- Moreno will face significant headwinds in Ecuador - Jun 6, 2017
- Brazil's Odebrecht faces many obstacles to recovery - May 15, 2017
- Brazil probe raises corruption claims in Venezuela - May 12, 2017
- Panama electoral reform to tackle corruption - Apr 27, 2017
- Odebrecht scandal may hit Dominican government hard - Apr 3, 2017
- Presidents face sliding popularity in Peru, Argentina - Mar 20, 2017
- Brazilian foreign policy faces new challenges - Mar 14, 2017
- Odebrecht probe will not convince in Venezuela - Mar 10, 2017
- Colombia’s infrastructure expansion faces major delays - Mar 7, 2017
- Latin American Odebrecht accord may speed up probe - Feb 20, 2017
- Corruption may dominate Colombia’s 2018 election - Feb 8, 2017
- Car Wash claims add to Peruvian president's woes - Jan 4, 2017
- More graphic analysis