A Swiss company that plays a central part in the printing of banknotes in Greece and other parts of Europe has been caught up in a corruption scandal in Brazil over the renewal of contracts worth €1.7 billion.
The Brazilian arm of Lausanne-based SICPA, which provides ink technology used for high-security printing across the globe, is being investigated by Brazil’s federal police and finance ministry over allegations it paid bribes worth 100 million Brazilian Real (€27 million) as part of a fraudulent bidding process.
According to the Brazilian finance ministry, the investigation started in 2013 when the incoming president of the Brazilian mint informed police that he had uncovered evidence suggesting employees had manipulated the tender process to benefit SICPA, which already supplies services to the mint.
On July 1, Brazilian police issued and carried out 23 search and seizure warrants in Rio de Janeiro, São Paulo and the country’s capital Brasilia as part of the two-year investigation dubbed Operação Vício (Operation Vice). SICPA’s Brazilian headquarters were among the offices raided.
In a statement to POLITICO, SICPA said it has “not committed any irregularity” in Brazil and that it is “co-operating fully with the Brazilian authorities during the on-going investigation.”
The privately owned company, which employs more than 3,000 people around the world and provides security printing services in 200 countries, said it has “fulfilled all legal and operational requirements related to its contract with [the Brazilian mint].”
While the company has previously confirmed that it has a contract with the Greek central bank to provide ink and printing technology, it declined to comment on the nature or value of that contract.
The Bank of Greece told POLITICO that it “cannot comment on euro banknotes relating to printing work” while the European Central Bank also said it “does not publish information of this kind” when asked for contract details.
SICPA’s problems in Brazil are linked to the renewal of two separate contracts to provide technology to prevent the sale of counterfeit soda, alcohol and tobacco products — all of which were estimated to cost Brazil close to €600 million a year in lost revenue.
SICPA’s first contract with the Brazilian government was for technology that applies advanced labels to cigarette packets as they come off the production line, making the government seal difficult to counterfeit and establishing a database to track the packets.
However, the investigation under way at the moment focuses on the renewal of a separate contract for tax collection technology that places a non-removable digital marking on each bottle of soda and beer sold in Brazil.
Put together, the contracts are part of more than 1,250 production lines in Brazil and are worth €1.7 billion, with operations managed by 14 SICPA offices scattered across the country.
Jacopo Barigazzi contributed to this article.