GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas) has agreed to pay BRL12 million (USD3.6 million) in fines to Brazil's Public Finance Ministry as part of an investigation into corruption. In a filing to the US Securities and Exchange Commission, the low cost carrier did not admit to any guilt as part of its leniency deal.
Investigators looking into the activities of Eduardo Cunha, former president of the Brazilian lower house, discovered that Gol had made cash transfers to companies owned by Cunha for online advertising. These cash values did not, however, correspond to services of comparable value.
Henrique Constantino, one of the founding members of Gol, resigned from the board in August after he became the subject of a corruption investigation. At the time, Brazilian police said that Constantino’s investigation was unrelated to Gol’s activities.
Global rating agency Standard and Poor’s (S&P) says the fine is unlikely to affect the airline’s cash flows, but mentioned that there may be fallout from the damage to the airline’s reputation. S&P has maintained the company’s negative rating due to continuing weak market conditions in Brazil.
