The Brazilian Ministry of Defense, at the end of 2013, declared the intention to acquire 36 JAS-39 Gripen E/F fighter aircraft from the Swedish manufacturer Saab. Two other companies, Boeing and Dassault Aviation, had contested the FX-2 contract, which was valued at $5.4 billion. Boeing was promoting the F/A-18 Hornet, while Dassault Aviation was promoting the Rafale.
Nevertheless, was this competition, which was characterized by numerous surprises, administered in a fair manner? In April 2015, the Brazilian justice system initiated an investigation to ascertain the reason for the $900 million discrepancy between the signed contract and Saab’s initial offer. Nevertheless, the case was promptly closed due to the absence of conclusive evidence of wrongdoing.
However, Brazilian justice reopened investigations into the FX-2 contract in March 2016 as part of its anti-corruption operation “Zélotes,” which ultimately resulted in the downfall of President Dilma Rousseff. This decision was made in response to the discovery of recent evidence of alleged tax evasion and influence peddling.
On December 9, 2016, the Brazilian Federal Prosecutor accused former President Luiz Inácio Lula da Silva of influencing the government to favor Saab’s offer over those of Dassault Aviation and Boeing, which escalated the case. Marcondes & Mautoni, a consulting firm that counts Saab among its clients, purportedly paid €700,000 to his son, Claudio Lula da Silva, in connection with this case. The Brazilian Federal Supreme Court completed the case in 2022, concluding that the FX-2 tendering process was conducted in accordance with the law.
Nevertheless, the US Department of Justice (DoJ) issued a subpoena to Saab North America to obtain information on “the Brazilian government’s acquisition of 36 Gripen E/F fighter jets” ten years after the contract was signed, and the first F-39E “Gripen” jets had been delivered to the Brazilian Air Force. Saab disclosed this information in a statement that was issued on October 10.
The company intends to cooperate with the US Department of Justice in this matter and to comply with their request for information, noted Saab. It also mentioned that certain aspects of the Brazilian fighter jet acquisition procedure have already been investigated by Brazilian and Swedish authorities and that these investigations ended without identifying any irregularities on Saab’s part.
What is the precise objective of the United States justice system? Saab is unable to provide additional information regarding the subject due to confidentiality obligations, the Swedish company explained.
The Gripen is liable to ITAR (International Traffic in Arms Regulations) due to the fact that it is built with numerous components that are manufactured in the United States. This regulation enables the United States to monitor and potentially prohibit the export of military equipment if it is in conflict with its interests.
