Odebrecht aims to secure plea deal with Mexico - report
Brazilian conglomerate Odebrecht is aiming to secure a plea deal with Mexican authorities similar to the ones it has reached with the governments of other Latin American countries, according to a report by local daily El Financiero.
Mike Munro, a high-level attorney hired by the troubled Brazilian firm last year to head its program of compliance, told the paper that the company is hoping that the potential plea agreement includes an 'adequate' fine.
The signing of a potential agreement will probably depend on the results of the investigations being currently carried out by local authorities, according to Munro.
"What we're dealing with here in Mexico is that we're facing the unknown, given that there are still lots of things that need to be resolved. Were there more bribes paid than reported? Who else was involved? I honestly don't believe we will see much progress [in securing a plea deal] until these questions are answered," Munro was quoted as saying.
The attorney said that although the company acknowledges its past mistakes, it seeks to continue doing business and demonstrate to potential business partners that it is changing its ways in regard to corrupt practices, with the adoption of a strict compliance program.
"We cannot change the past. What's done is done. It was wrong," Mundor said. "We have to pay the corresponding fines and change our way of doing business," he added.
In December, plea deal documents released by the US Department of Justice revealed that Odebrecht admitted having paid around US$10.5mn in bribes to corrupt Mexican government officials in exchange for public works contracts in 2010-2014. The scheme helped the company obtain over US$39mn in benefits.
The majority of Odebrecht's projects in Mexico were commissioned by state-owned oil company Pemex, such as the US$935mn contract awarded in 2014 to build the Los Ramones II Norte natural gas pipeline and the 2015 US$1.2bn contract for the development of a residuals utilization project for the Miguel Hidalgo refinery in Tula, Hidalgo state, among others.
The disgraced company has also been involved in waterworks projects, particularly in the Gulf state of Veracruz. Odebrecht currently holds a 30-year concession to manage potable water services in the state's Veracruz and Medellín municipalities.
Although later than other countries affected by the scheme, Mexican authorities announced that they would launch an investigation into the allegations. Meanwhile, a Mexican congressional commission approved a motion calling on federal and state authorities, local legislatures and Pemex to revoke all concessions and contracts awarded to the firm and any of its subsidiaries, as well as refraining from awarding future contracts to them.
As for Pemex, the company said its responsibilities unit opened an investigation to determine whether bribes were paid to any of its executives and will apply sanctions where necessary.
PICTURED: Former Odebrecht CEO Marcelo Odebrecht during a visit to Mexico in 2012.
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