Under the terms of the agreements, the Company will continue to work with relevant authorities and improve its governance and anti-corruption compliance practices. The company will also be subject to external monitoring for an estimated period of 3 years. BRASILIA, May 27 (Reuters) – The board of directors of Brazilian petrochemical maker Braskem SA has approved the signing of a leniency agreement with Brazil`s Court of Auditors` office and the government`s attorney general in the Corruption case Car Wash, the company said in a document filed on Monday. Braskem S.A. (“Company”), in accordance with CVM judgment no. 358/02, informs its shareholders and the market that on that day it will mark the final phase of the essential facts of 14. December 2016 with the conclusion of formal agreements with the U.S. Department of Justice (“DoJ”) and the U.S. Securities and Exchange Commission (“SEC”) and the completion of the investigation into Switzerland by the Attorney General`s Office by written order. The company had previously announced the leniency agreement with Brazil`s Federal Prosecutor`s Office (“MPF”). Under their respective agreements, Odebrecht and Braskem are obliged to continue their cooperation with law enforcement authorities, including in the investigation and prosecution of those responsible for criminal conduct. Odebrecht and Braskem also agreed to introduce improved compliance procedures and to retain independent compliance monitors for three years. The cases will be assigned to U.S.

District Judge Raymond J. Dearie of the Eastern District of New York. Braskem S.A., headquartered in Sao Paulo, is south America`s largest petrochemical company, announced on May 31, 2019 that it has signed a 2.9 billion reais (approximately $750 million) leniency agreement with the Brazilian Office of the Comptroller General (CGU) and the Office of the General Counsel of the Federal Government (AGU). The agreement covers the same facts as the comprehensive settlement reached by the Company in December 2016 with the Brazilian Office of the Attorney General of Switzerland, the United States Department of Justice, the United States Securities and Exchange Commission and the Swiss Office of the Attorney General. The settlement, which resulted in $3.5 billion in global criminal penalties, sparked allegations that Braskem and Odebrecht used a business unit of Odebrecht, the Structured Operations Division, to manage a fictitious budget, channel funds to offshore companies, and systematically pay hundreds of millions of dollars to corrupt officials in Europe and North and South America through shell companies. offshore. Under this latest settlement with the CGU and the AGU, Braskem will receive a credit of approximately R$2.5 billion on the leniency agreement, based on the amount paid by Braskem compared to 2016. Braskem, whose American Depositary Receipts (ADR) are listed on the New York Stock Exchange, pleaded guilty separately to presenting criminal information filed in the Eastern District of New York on one count accusing him of conspiracy to violate FCPA anti-bribery regulations. Braskem agreed to pay a total fine of $632 million.

The verdict has not yet been announced. In related proceedings, Braskem also entered into an agreement with the U.S. Securities and Exchange Commission (SEC), the Ministerio Publico Federal in Brazil and the Attorney General`s Office in Switzerland. As part of its resolution with the SEC, Braskem agreed to a total profit skimming of $325 million. Braskem agreed to pay the Brazilian authorities 70% of the total criminal penalty and agreed to pay the Swiss authorities 15%. The department has agreed to take into account the criminal sanctions paid to the Brazilian and Swiss authorities as part of its agreement with the company. The United States will receive $94.8 million, an amount equivalent to 15% of the fines paid by Braskem. Of this amount, about R$1.6 billion will be paid in advance after the agreements are ratified by the competent courts. The balance of approximately R$1.5 billion will be paid in six annual instalments starting in January 2018, adjusted for changes in the CAPI. Petrochemical giant Braskem, a joint venture between Petrobras and Odebrecht, is the first company under a leniency agreement in Brazil whose compliance program has been certified by independent auditors. As described in the material event dated December 14, 2016, as part of the global settlement, the Company will pay to the competent authorities in Brazil and abroad the total amount of approximately $957 million, or approximately R$3.1 billion. Of this total amount, about 1.6 billion reais will be paid in advance after the ratification of the agreements by the competent courts, of which about $95 million will be paid to the DoJ, $65 million to the SEC, 95 million francs to the Public Prosecutor`s Office and 736 million reais to the MPF.

The remaining amount of approx. R$1.5 billion will be paid in six annual instalments, which will be adjusted by the IPCA amendment to the MPF in accordance with the Brazilian Leniency Agreement. The amounts paid to the MPF will be used as compensation by third parties. The board of directors of Brazilian petrochemical company Braskem said it had approved a 410 million reais ($101 million) leniency deal with authorities for concealing its role in a corruption scheme involving state-owned oil company Petrobras. .