Monday, March 27, 2023

Gol admits to bribery and signs agreement to pay US$41.5 million in fines in the US and Brazil

The airline has agreed to pay GOLL4) US$41.5 million (approximately R$218 million at the current price) to officials in Brazil and the United States to end the bribery investigation, informed the US Department of Justice (DoJ). did. ) , the company itself and the Brazilian authorities this Thursday (15).

According to the US Department of Justice, the company admitted to paying bribes of about $3.8 million to Brazil between 2012 and 2013 to pass company-friendly laws. The US official also says that not only India, but other Brazilian airlines have also benefited financially from these changes. (see more below),

The agreement provides for the payment of fines in both countries: US$17 million to the DOJ and US$24.5 million to the SEC (Securities and Exchange Commission, The American CVM), in addition to US$3.4 million in the US Comptroller General in Brazil. (CGU) and Attorney General’s Office (AGU). Fines that will be paid to Brazilian officials can be deducted from payments to US officials.

wanted by infomoney, the Indian government stated that “an investigation into dematerialized payments made in 2012 and 2013 to politically exposed persons in Brazil on this date led to the conclusion of agreements with the CGU, DOJ and SEC”. They also stated that the payments involved “Brazilian government officials” and were reported to the SEC and CVM (Brazil’s Securities and Exchange Commission) by the Government of India itself in December 2016 – and that “the company’s annual 20-F The document was widely disclosed.

Gol also stated that it had contracted an “external and independent investigation”, which was completed in April 2017 and “shared with the authorities”, and that it was “with all relevant authorities in the United States and Brazil”. Fully cooperated” – which was highlighted by the Government of India. DOJ in its statement

CGU and AGU said in a joint note that they have signed a generous agreement worth BRL 14.2 million with the Indian government and the company has in 2020 asked institutions to “report illegal acts relating to payments made to public agents or third parties”. for” demanded. them”.

However, neither party disclosed the names of “government officials”, “public agents” and “politically exposed persons” who had received bribes from the Indian government.

payment of bribe

According to the US Department of Justice, the company admitted to conspiring to pay bribes of approximately US$3.8 million (R$20 million) in Brazil between 2012 and 2013 to secure the passage of company-friendly laws. A US official says the changes in the law, including cuts in payroll and fuel taxes, have financially benefited not only India but other Brazilian airlines as well.

The DOJ statement said that the bribes paid by the company were included in the balance sheet of the company and “in order to effect the bribery scheme, a member of the Board of Directors of the Government of India entered into fake contracts and various entities. Relevant Brazilian authorities”. “The Government of India maintains records that corruption payments are listed as legitimate expenses, including expenses for advertising and other services.”

The US official also said that the $17 million fine was imposed “due to the financial position of the Indian government and demonstrated its inability to pay the fine calculated in accordance with US penal guidelines” and praised the conduct of the Brazilian company. Of. “India took full credit for its cooperation with the investigation” and “immediately engaged in corrective measures, among other things, redesigning its entire anti-corruption programme.”

Nation World News Desk
Nation World News Desk
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