France Suspects Bribery in Multibillion Dollar Submarine Sale to Brazil

News

French prosecutors are investigating whether DCNS, anindustrial group that specializes in naval defence and energy, paid abribe as part of a deal to sell five submarines worth US$7.5 billion to Brazil, Reuters reported Sunday.

Related Articles

Calls for Anti-Corruption in Ukraine’s Post-War Rebuild
As Ukraine looks toward recovery from the ongoing conflict, international partners and reform advocates call for embedding anti-corruption measures in post-war restoration efforts.
Mining Crimes Pose a Challenge for Law Enforcement, Experts Say
A recent report found that only one in three of environmental crime cases in the Amazon produced a parallel financial crime investigation from authorities.
Kyrgyz Elite Targeted as Japarov Allies Gain Key Assets
After the killing of crime boss Kamchy Kolbaev, Kyrgyz authorities have intensified their crackdown on prominent business figures suspected of financing organized crime. But is it justice—or something else?
Calls for Anti-Corruption in Ukraine’s Post-War Rebuild
As Ukraine looks toward recovery from the ongoing conflict, international partners and reform advocates call for embedding anti-corruption measures in post-war restoration efforts.
Mining Crimes Pose a Challenge for Law Enforcement, Experts Say
A recent report found that only one in three of environmental crime cases in the Amazon produced a parallel financial crime investigation from authorities.
Kyrgyz Elite Targeted as Japarov Allies Gain Key Assets
After the killing of crime boss Kamchy Kolbaev, Kyrgyz authorities have intensified their crackdown on prominent business figures suspected of financing organized crime. But is it justice—or something else?
May 22nd, 2017
Bribery Police

An investigation began last October into the "corruption of foreign officials," according to French daily, Le Parisien, as part of a larger inquiry by Brazilian federal police dubbed Lava Jato, or Car Wash. Begun in 2014, that inquiry has looked into bribery suspicions involving hundreds of politicians and public figures.

DCNS, which is 62 percent state owned, and 35 percent owned by French defense electronics group Thales SA, denies any wrongdoing.

"We have nothing to do with the Lava Jato case. DCNS scrupulously respects the rules of law around the world," a spokesman told Reuters.

Signed when French President Nicolas Sarkozy visited his Brazilian counterpart in late 2008, the contract covers the delivery of four Scorpene-class attack submarines, construction of a nuclear-powered submarine and provision of a naval dockyard in Brazil.

Prosecutors are investigating possible corruption ties between the DCNS contract and Rio de Janeiro’s winning bid to host the 2016 Olympic Games which took place at the same time. The probe is developing as DCNS’s Brazilian partner, Odebrecht, is alleged to have bribed politicians to win public contracts.

Last year, Marcelo Odebrecht, the company’s former chief executive, was sentenced to 19 years in prison for corruption and money laundering.

Related Reporting