Colombia makes first arrest tied to Brazil builder kickbacks
BOGOTA, Colombia (AP) — Colombian police have made their first arrest stemming from a massive graft scandal triggered by bribes allegedly paid by Brazilian construction giant Odebrecht S.A., authorities said Friday.
Gabriel Garcia is accused of demanding a $6.5 million bribe as deputy transport minister in 2009 in exchange for favoring Odebrecht for a major highway contract. He was arrested Thursday outside a Bogota supermarket.
As part of a $3.5 billion plea agreement with the U.S. Justice Department last month, Odebrecht admitted to paying almost $800 million in bribes to win business in 12 countries, most in Latin America.
The guilty plea has spurred a number of investigations across Latin America and shed a light on how deeply-entrenched corruption cuts across the region's ideological divide.
Peruvian authorities said this week they want to question three former presidents as well as current President Pedro Pablo Kucyznski about some 16 contracts awarded Odebrecht from 2005-2014 in which irregularities have been detected. Kuczysnki was prime minister or finance minister when some of the $29 million in kickbacks to Peruvian officials were paid.
Meanwhile, Panama this week became the latest country Odebcrecht has agreed to compensate for alleged dirty dealings. Panama's Attorney General said Thursday that the Brazilian conglomerate had agreed to refund the government $59 million corresponding to the amount in bribes the company paid to win marquee projects such as construction of Panama City's first subway and a soccer stadium.
In Colombia, Odebrecht admitted to paying $11 million, most of it to officials like Garcia in former President Alvaro Uribe's government. Uribe on Friday said that Garcia had "betrayed" his trust. Previously Garcia had denied any wrongdoing.
