Amid concerns of potential corruption, the U.S. Department of Justice has requested information from Saab North America regarding the 2014 purchase of F-39 Gripen fighter jets by the Brazilian Air Force. This acquisition, involving 36 aircraft valued at $5.4 billion, has been subject to investigations in Brazil over possible corruption cases, though Saab stated that investigations in both Brazil and Sweden were closed without finding any irregularities by the company.
Saab confirmed it was subpoenaed and will fully cooperate with U.S. authorities by providing the requested information. In 2016, Brazilian prosecutors accused former President Luiz Inácio “Lula” da Silva of using his influence to help Saab win the fighter jet contract. Lula, who is now once again President of Brazil, denied the accusations, and his lawyers dismissed the case as political persecution. It is worth noting that the U.S. investigation led to a 6.38% drop in Saab’s stock, reflecting the uncertainty caused by this new involvement in the Brazilian Gripen case.
In 2014, the Brazilian Air Force chose the Gripen to replace its fleet of Mirage 2000 fighters and later F-5 Tiger III, after rejecting Boeing’s F-18 Super Hornet and Dassault Aviation’s Rafale. As part of the agreement, some of the FAB’s Gripens will be produced in Brazil at an aircraft assembly plant inaugurated in May 2023 in Gavião Peixoto, providing a significant boost to Brazil’s aerospace industry through the transfer of technology to the South American country.
Recently, the FAB received its eighth Saab F-39 Gripen fighter jet, registration 4108, which was entirely produced in Sweden. The aircraft was shipped to the port of Navegantes (Santa Catarina, Brazil) and then conducted its first flight on Brazilian soil from Navegantes to the Anápolis Air Base (BAAN), where it officially joined the force.
*Images used for illustrative purposes.-
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It is common knowledge that when the US loses a military tender of that magnitude, it will find any way using its FCPA through its DOJ, FBI and SEC to punitively fine SAAB because it has a North American office. The US routinely uses this system to mop back dollars into its territory.
It is instructive to note that US companies never face such punitive punishments for far worse crimes. Frédéric Pierucci in his book The American Trap, which is an account of his horrifying experience, clearly outlines this game.
The deal between Brazil and Sweden has nothing to do with the USS
Sweden and Brazil has the right to conduct business on its own, USA has no rights to interfere, unless, American aviation companies were rejected, boeing
Should France similarly lodge an investigation why the submarine contract with Australia was lost to US?
Corruption is pervasive — in Colombia, Sweden, Brazil, South Africa, and the Czech Republic. It is not simply about the United States losing a bid; rather, it is fundamentally about corruption itself.
For example, Colombia has made a major purchase in cooperation with Sweden, where the price was increased by more than 35%. On top of that, the delivery timeline is stretched across the next ten years. Nevertheless, this is precisely why many countries continue to buy from Sweden:
1. The price markup is embedded in the structure.
2. Commissions to brokers and intermediaries are diluted within the process.