Andrade Gutierrez SA, the conglomerate whose chairman was arrested in Brazil’s largest corruption scandal, has admitted to paying bribes to secure World Cup construction contracts as part of a leniency deal, said a person familiar with the agreement.
The admission makes Andrade the first contractor to admit to paying bribes in Brazil related to sport’s most-watched event. A 1 billion reais ($263 million) payment by Andrade’s building unit to secure the deal should clear the way for the country’s second-largest engineering and construction group to regain access to public works contracts, the person said. Andrade also admitted to paying bribes for contracts with Petroleo Brasileiro SA, the state-controlled oil producer at the center of the corruption scandal.
