Rebuilding an Empire: The Odebrecht Challenge after the Corruption Scandal

Ligia Maura Costa

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Rebuilding an Empire: The Odebrecht Challenge after the Corruption Scandal

Ligia Maura Costa

FGV EAESP, Brazil

Volume 17: 2020 pp. 255-272: ABSTRACT

From modest beginnings, the conglomerate Odebrecht became one of the most relevant actors of development for Brazil and Latin America. By 2010, the conglomerate was elected the best family business in the world. Annual revenues have risen from US$ 24 billion in 2008 to US$ 41.8 billion in 2014. By 2015, Odebrecht was in a very different situation, involved in a multi-billion-dollar corruption scandal. To illegally secure more than 100 projects, Odebrecht paid approximately US$ 788 million in bribes across 12 countries. Corruption was not new in Latin America; but so many powerful people facing jail time in the region certainly was. In 2016, Odebrecht agreed to pay a record breaking fine of US$ 2.6 billion for violation of the Foreign Corrupt Practice Act. This case describes Odebrecht corruption scandal, touching on possible causes, the company’s handling of the criminal allegations, and probable defenses to protect against future setbacks.