Brazil airline Gol to pay $41 mln to resolve U.S., Brazil bribery probes

A Boeing 737-700 airplane of Brazilian airways GOL Linhas Aereas prepares to land at Santos Dumont airport in Rio de Janeiro, Brazil March 21, 2019. REUTERS/Sergio Moraes/File Picture

WASHINGTON, Sept 15 (Reuters) – Brazil airline Gol Linhas Aéreas Inteligentes SA (GOLL4.SA) can pay greater than $41 million to resolve parallel bribery investigations by legal and civil authorities in the US and Brazil, U.S. authorities mentioned on Thursday.

Gol entered right into a three-year deferred prosecution settlement with the Justice Division in reference to legal info filed in Maryland charging the corporate with conspiracy to violate anti-bribery laws, the division mentioned in an announcement.

The U.S. Securities and Change Fee mentioned in an announcement that Gol had agreed to pay $70 million to settle expenses towards it.

Nevertheless, resulting from Gol’s “incapacity to pay the fines in full, the SEC and the (Justice Division) waived fee of all however $24.5 million and $17 million”, it added.

Gol can pay round $3.4 million in extra fines to Brazilian authorities, the SEC mentioned. The airline agreed with the Justice Division to pay greater than $87 million to settle legal expenses, the SEC added.

Assistant Lawyer Common Kenneth Well mannered, of the Justice Division’s legal division, mentioned Gol had “paid tens of millions of {dollars} in bribes to overseas officers in Brazil in trade for the passage of laws that was useful to the airline.”

Well mannered added that Gol had “entered into fraudulent contracts with third-party distributors for the aim of producing and concealing the funds essential to perpetrate this legal conduct, after which falsely recorded the sham funds in their very own books.”

Between 2012 and 2013, the corporate conspired to supply and pay about $3.8 million in bribes to overseas officers in Brazil, the Justice Division mentioned, citing courtroom paperwork.

Gol representatives weren’t instantly reachable for remark.

In late July, the corporate reported a steep second-quarter internet loss primarily resulting from overseas trade variations.

It additionally offered new forecasts for 2022 to replicate frequent jet gasoline worth will increase and pass-through results on fares, reducing its outlook for key metrics reminiscent of EBITDA margin and cargo issue, however rising its income forecast. learn extra

Reporting by Kanishka Singh in Washington; Modifying by Invoice Berkrot and Stephen Coates

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