Investigation Name:
Investigation into Braskem Idesa's Activities in Mexico
Trend:
None
Type of investigation:
Internal
Whistleblower:
Unknown
Summary
Braskem, S.A., a corporation headquartered and incorporated in Brazil, was the largest petrochemical company in the Americas, with significant interests in the petrochemical and thermoplastic products industries. Braskem's shares were registered with the SEC and traded on the New York Stock Exchange.
In July 2020, Spain extradited Emilio Lozoya, a former CEO for Petroleos Mexicanos ("PEMEX"), to Mexico on allegations of his involvement in the Odebrecht bribery scandal, a wide ranging bribery scheme involving multiple countries which resulted in large FCPA enforcement actions against Odebrecht and Braskem in 2016. Upon his return to Mexico, Lozoya was interviewed by the Mexican attorney general, and according to media reports at the time, Lozoya implicated Braskem in a separate bribery scheme involving Braskem Idesa, a joint venture between Braskem and Grupo Idesa that produced polyethylene. According to the reports of Lozoya's testimony, PEMEX had entered into a contract with Braskem Idesa that was extremely favorable to Braskem Idesa and that bribes had been paid as part of that contract.
In its 6-K filed on August 6, 2020, Braskem disclosed that in light of the media reports, the company had initiated investigations into the alleged irregularities.
In its 6-K filed on March 12, 2021, Braskem expanded on its prior disclosure saying that it had hired an independent American law firm to carry out an internal investigation into the matter.
In its 6-K filed on March 17, 2022, Braskem indicated that it had completed its internal investigation in February 2022, finding no evidence to corroborate the former PEMEX CEO's claims. It is unclear if the DOJ or SEC ever opened independent investigations into the possible misconduct.
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