The US Department of Justice (DOJ) is investigating Embraer (EMB, São José dos Campos Professor Urbano Ernesto Stumpf) over suspicions that between 2008 and 2010, the Brazilian manufacturer used bribery to secure civilian and military aircraft sales contracts with firms in India, Saudi Arabia, the Dominican Republic, and Mozambique.
According to a report in last week's Folha de São Paulo newspaper, the investigation began in 2010 and among other deals, covers the sale of two E190s to LAM - Linhas Aéreas de Moçambique (TM, Maputo) in 2008 and eight Super Tucano aircraft to the Dominican Republic also in 2008. Concerning the latter, Embraer is alleged to have paid USD3.5 million in kickbacks to a retired Dominican Air Force colonel-cum-parliamentarian to secure the deal.
The report adds that once it had been caught paying bribes to the Dominican authorities, Embraer, by virtue of its US subsidiary, began to cooperate with the DOJ as well as the US Securities and Exchange Commission (SEC) in their investigations.
In July, Embraer announced it would pay USD200 million in penalties while adopting new anti-corruption policies to be overseen by both the Brazilian and US authorities.
