Odebrecht is in the headlines once again. For those unfamiliar, Odebrecht was, until recently, considered one of Brazil’s “success” stories: a construction powerhouse with a global reach. It was a shining example of South America’s “entrepreneurship” until Brazilian Judge Sergio Moro scrutinized the company’s activities related to the massive Petrobras corruption scandal.
The crux of the issue is, of course, bribe payments to secure procurement contracts. Odebrecht was involved in this as much as any other company, large or small, from Latin America or beyond, landing deals with governments in the region. That’s just how business operates in that part of the world. Whenever procurement contracts aren’t assigned directly using whatever legal loophole permits it, the bidding processes tend to be rigged beforehand: a common method is ensuring that all companies bidding in a particular open tender are ultimately controlled by the same individuals.
Brazil’s economy vastly outstrips Venezuela’s. Odebrecht stands as one of Brazil’s largest and most “successful” corporations, with 38% of its foreign operations reportedly based in Venezuela, where the total worth of procurement awarded since the rise of chavismo is estimated at over $20 billion. Odebrecht has acknowledged a scheme in which it “paid approximately $788 million in bribes to government officials, their representatives, and political parties across various countries to secure business.” Braskem, a petrochemical firm controlled by Odebrecht, also admitted guilt in the international bribery scheme.
Yet, we are to believe that out of the $788 million Odebrecht allegedly paid in bribes, only $98 million was given in Venezuela to obtain over $20 billion worth of public contracts. This calculation doesn’t add up. No matter how involved Lula and Dilma Rousseff were in securing contracts directly from Hugo Chavez, purportedly in exchange for donations to their Workers’ Party (PT), $98 million is less than 0.5% of the total value. It’s hard to take that seriously.
The Justice Department authorities, despite their commendable international fight against corruption, used some dramatic language regarding the case:
“Odebrecht and Braskem utilized a hidden but operative Odebrecht business unit—a ‘Department of Bribery,’ if you will—that systematically disbursed hundreds of millions of dollars to corrupt government officials across countries on three continents,” stated Deputy Assistant Attorney General Suh. “Such flagrant misconduct warrants a robust response from law enforcement, and through a strong collaboration with our colleagues in Brazil and Switzerland, we have seen just that. I hope today’s action serves as a template for future efforts.”
“These resolutions stem from an extraordinary multinational endeavor to identify, probe, and prosecute a highly complex and long-running corruption scheme leading to the payment of nearly a billion dollars in bribes to officials at all government levels in multiple countries,” said U.S. Attorney Capers. “To hide their crimes, the defendants leveraged the global financial system – including U.S. banking – to obscure the origin and distribution of the bribe payments by routing funds through various shell companies. The message conveyed by this prosecution underscores that the United States, in collaboration with its international law enforcement partners, will not hesitate to hold accountable those corporations and individuals seeking to profit from corrupting the legitimate operations of government, no matter how intricate the scheme.”
“This case highlights the vital role of our partnerships and the dedicated personnel striving to bring to justice those driven by greed who act in their interests,” remarked Assistant Director Richardson. “The FBI will not sit by idly while corrupt individuals undermine a fair and competitive economic system or support criminal enterprises. Our commitment to working alongside foreign partners to eliminate corruption worldwide is steadfast, and we appreciate our Brazilian and Swiss allies for their relentless efforts in this fight.”
“Regardless of the circumstances, when foreign officials are bribed, they jeopardize our national security and the international free market system in which we participate,” commented Assistant Director in Charge Sweeney. “Just because they are out of our sight, doesn’t mean they are beyond our grasp. The FBI will employ all available resources to eradicate this type of corrupt conduct.”
My question to Justice Department officials, U.S. Attorneys, FBI, DEA, Homeland Security, and SEC is: when will you act on the information you already have regarding Venezuela’s Odebrecht connections? When will you begin issuing indictments against PDVSA, Rafael Ramirez, Baldo Sanso, Diego Salazar, Nervis Villalobos, Diosdado Cabello, Wilmer Ruperti, Derwick Associates, David Osio, Moris Beracha, Pedro Torres Ciliberto and son, Luis Oberto & co, Victor Vargas, Juan Carlos Escotet, Alejandro Andrade, Leopoldo Gonzalez Dellan, etc., who regularly use the “banking system in the United States”? All of whom are U.S. residents or frequent visitors?
The Odebrecht case, much like its roots in the Petrobras scandal, is merely a small chapter in the vast Latin American corruption saga: Venezuela and PDVSA. It’s widely known that, although it may seem minor, the largest sums paid in bribes by Odebrecht happened in Venezuela. Today, the biggest criminal cartel south of the Rio Grande is called chavismo, officially recognized as the Government of Venezuela. Want to deliver a significant blow to those who “endanger our national security and the international free market system”? Take action against what you possess regarding Venezuela, PDVSA, and its U.S. enablers. Investigating this avenue will surely uncover the most audacious and extensive corruption scheme this side of Moscow.