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Odebrecht scandal ensnares Latin America’s powers

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As Latin America’s biggest construction company, Odebrecht SA became a major player in Brazil’s development at home and abroad — until a huge corruption scandal known as “Car Wash.”


It’s now ensnaring the region’s most powerful: following Ecuador, where the vice president was sentenced to six years in prison, the Peruvian president now risks impeachment.


Here are key facts about the mushrooming scandal.


Pruvian President Pedro Pablo Kuczynski last Thursday could become the highest-profile political figure to be punished in the expanding scandal surrounding Odebrecht.


The Brazilian engineering and construction firm has admitted to paying millions of dollars in bribes in several Latin American countries to secure public works contracts.


The charges against Kuczynski revolve around $5 million he received from Odebrecht between 2004 and 2013.


Though he fiercely denies the accusations, his time in office appears to be ticking down: the opposition holds the majority in Congress, which will vote on initiating the process.


Analysts warn the political uncertainty hanging over Peru could deal a “strong impact” to its economy, Latin America’s seventh-biggest.


Kuczynski is not alone in Peru: former President Ollanta Humala is in preventive detention, accused of receiving $3 million from Odebrecht to fund his political campaigns.


Another former president Alejandro Toledo faces an order for his extradition from the United States, suspected of receiving $20 million in kickbacks.


Ecuador’s vice president, Jorge Glas, was last week sentenced to six years in prison for receiving $13.5 million in kickbacks.


He currently is the highest-ranking politician to be convicted in the sprawling case centred on Odebrecht.


Glas, 48, had been in preventive custody since October, after his immunity was lifted by Congress, although he was allowed to remain vice president.


The congress of Ecuador recently voted to open proceedings on whether to fire Glas.


Investigations and court cases are also under way elsewhere in the region.


In December 2016, the US Justice Department announced that Odebrecht SA and its petrochemical joint venture Braskem would pay a $3.5 billion fine — a record in international corruption cases — after admitting to paying $788 million in bribes across 12 countries.


Brazil is the origin of the “Car Wash” probe that continues to shake that country’s political and business elite.


Building everything from the Miami Heat basketball arena to a hydroelectric dam in Angola, Odebrecht SA has long been one of Brazil’s economic giants.


At the peak of his career at the company founded by his grandfather, Marcelo Odebrecht was one of the most influential people in the country.


Often described as a construction company, Odebrecht SA is also a major player in engineering, agriculture and petrochemical production.


The multinational behemoth was founded in 1944 in the northeastern state of Bahia, by Norberto Odebrecht, grandfather of Marcelo.


Former Brazilian president Luiz Inacio Lula da Silva was sentenced in July to 9.5 years behind bars after being convicted in the massive graft scandal. The court in Porto Alegre said it will rule on his appeal January 24.


That could decide whether Lula can take part in October 2018 presidential elections in which he is currently the frontrunner.


A possible takedown of Peru’s president could be used in the Brazilian election to criticise the leftist Workers’ Party, some analysts say.


Brazilian officials running the “Car Wash” inquiry discovered that Odebrecht was especially active in bribing politicians to help secure inflated construction contracts at Petrobras and elsewhere.


— AFP


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