SEC Charges Gol Intelligent Airlines, Brazil’s Second Largest Airline, with FCPA Violations
The Securities and Exchange Commission today charged Brazil’s second largest domestic airline, GOL Linhas Aéreas Inteligentes, for violating the Foreign Corrupt Practices Act (FCPA). The São Paulo-based company, also known as Gol Intelligent Airlines, agreed to pay $70 million to settle the SEC charges. According to the SEC’s order, Gol bribed prominent Brazilian government officials in exchange for certain favorable payroll tax and aviation fuel tax reductions. The scheme took place against a backdrop of insufficient internal accounting controls, and the bribes were characterized as legitimate business expenses in Gol’s recordkeeping. "This case highlights the need for internal accounting controls that are effective for transactions initiated at all levels of an organization," said Charles Cain, the SEC’s FCPA Unit Chief. "Here, Gol’s internal accounting controls were particularly ineffective for transactions initiated by those at its highest levels." Gol co...