By Dylan Tokar 

Odebrecht SA, a Brazilian construction conglomerate, will pay $50 million in charitable contributions to resolve allegations of bribery under a deal reached with a Latin American development bank.

The payments will go to charities and nonprofit organizations that operate in Latin America, the Inter-American Development Bank said Wednesday.

Under the agreement, certain Odebrecht subsidiaries will also be prohibited from bidding on bank-funded projects for varying lengths of time, the IDB said.

Odebrecht representatives didn't immediately respond to a request for comment.

The IDB settlement is the latest in a long series of setbacks for

Odebrecht, one of the most high-profile targets of a landmark corruption investigation into Brazil's state-controlled oil company, Petróleo Brasileiro SA, also known as Petrobras.

Odebrecht and petrochemical company Braskem SA in 2016 struck parallel agreements with authorities in three countries to pay up to $4.5 billion, as part of the largest anticorruption settlement in history. Braskem is partly owned by Odebrecht and Petrobras.

The settlements with U.S., Brazilian and Swiss authorities have spawned corruption probes in other Latin American countries where the two companies operate. Last month, Odebrecht filed for chapter 15 bankruptcy in the U.S. shortly after it filed for bankruptcy in Brazil in June.

The IDB said its investigation revealed evidence of bribes paid by Odebrecht during a contract for a hydroelectric power plant in Venezuela and a highway rehabilitation project in the state of São Paulo, Brazil.

Under the terms of the settlement announced Wednesday, Odebrecht didn't contest the evidence, the IDB said. The company won't be required to pay the $50 million in charitable contributions until 2024.

CNO SA, a subsidiary of Odebrecht, will be debarred from bidding on IDB projects for six years, the IDB said.

Another subsidiary, Odebrecht Engenharia e Construção SA, will be conditionally non-debarred for 10 years. Under a conditional non-debarment, the subsidiary will be eligible to participate in IDB-financed projects if it fully meets the conditions of the settlement.

A number of other CNO and Odebrecht Engenharia subsidiaries were also debarred or conditionally debarred under the settlement, IDB said.

Write to Dylan Tokar at dylan.tokar@wsj.com

 

(END) Dow Jones Newswires

September 04, 2019 19:13 ET (23:13 GMT)

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