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Mon, Feb 02, 2009

Embraer Combats Brazilian Magazine's Accusations

Attempts To Set Record Straight On Columbian Gov't Aircraft Sale

In an article entitled "Cobrança Suspeita" ("Suspicious Payment"), Brazil's Veja magazine recently reported on an alleged improper request by Maria Juliana Buendía de La Vega, for a commission on the sale of Embraer Super Tucano aircraft to the Colombian Government.

In a weekend release, Embraer refuted that assertion -- claiming the article "originated from a libelous attack on the part of Ms. Buendía de La Vega, and is based on incomplete and untrue information released to the press."

Embraer then offered a "clarification" on the company's relationship with de La Vega's late husband, Guillermo Garcia Gil. Officials say that in February 2000, Embraer hired the services of Eximco, a company at which Guillermo Garcia Gil worked, for the purpose of promoting the sale of Super Tucano aircraft to the Colombian Government.

The planemaker asserts that during the term of the contract, which was formally terminated by the parties in August 2002, not one sale was finalized to the Colombian Government. In fact, in June 2002, the Colombian Government chose not to move forward with the bidding process.

The contract for the sale of Super Tucano aircraft to the Colombian Government was signed on December 7, 2005, within the scope of a new bidding process -- about three years after the termination of the contract with Eximco and two years after the death of Guillermo Garcia Gil, which occurred in 2003 (not in 2005, as stated in the article).

Embraer further asserts that in duly documented correspondence with Ms. Buendía de La Vega and her legal representative in Brazil, in March 2007 and April 2008, respectively, the company expressly denied the undue request for payment.

Embraer maintains it has "built a worldwide reputation based on ethical and respectful conduct, and on rigorous integrity with all of the people, companies and Governments with which it has relations, and wholly refutes the attacks to which it has been subjected."

Embraer says it is considering "appropriate legal measures" to be taken in the case.

FMI: www.embraer.com

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In an article entitled "Cobran&ccedil;a Suspeita" ("Suspicious Payment"), Brazil's Veja magazine recently reported on an alleged improper request by Maria Juliana Buend&iacute;a de La Vega, for a commission on the sale of Embraer Super Tucano aircraft to the Colombian Government.

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