The corruption scandal that shocked Brazil, and severely destabilised the country in 2016, appears to have largely been laid to rest now that the companies involved – petrochemical player Braskem (São Paulo / Brazil; www.braskem.com.br), its part-owner Odebrecht (Salvador / Brazil; www.odebrecht.com) and affiliate Petrobras (Rio de Janeiro / Brazil; www.petrobras.com.br) – have been slapped with immense fines.

Internationally active Braskem will have to pay close to USD 1 bn in penalty and damages to the Brazilian, US and Swiss authorities for its participation in the corruption scandal, and the company has also agreed to subject itself to an external and independent anti-corruption compliance monitor for the next three years. “Braskem acknowledges its responsibility for the acts of its former team members and agents, and regrets its past conduct,” the company said in a statement.

Meanwhile, construction giant Odebrecht has agreed to pay USD 2.6 bn in fines to authorities from the three countries involved. The pay-out is expected to be the biggest under US foreign corrupt practices law, the Financial Times reports. The figure is said to be lower than the originally targeted fine, which media reports say was reduced in light of Odebrecht’s huge debt and its frozen order book. That being said, both Odebrecht and Braskem could still face civil lawsuits and other legal actions from other countries.

The fines follow the jail sentence imposed on former Odebrecht CEO Marcelo Odebrecht (see Plasteurope.com of 15.03.2016) and the recent announcement by oil group Petrobras – which is at the heart of the scandal – to cease all petrochemicals, fertilisers, biofuel and liquid gas distribution activities (see Plasteurope.com of 23.09.2016).