DOJ Probes Saab’s Brazilian Fighter Jet Deal: Implications for Global Defense Industry
Staff Editor U.S. Justice Department Probes Saab’s Brazilian Fighter Jet Deal
The U.S. Department of Justice (DoJ) has launched an inquiry into Saab’s subsidiary regarding Brazil’s 2014 purchase of Gripen fighter jets, a deal previously scrutinized in a Brazilian corruption investigation. Saab has confirmed its intention to fully cooperate with the DoJ’s request for information.
This latest probe follows earlier investigations by both Brazilian and Swedish authorities into the procurement process. Both inquiries concluded without finding any evidence of wrongdoing on Saab’s part.
The deal has been a subject of political controversy in Brazil. In 2016, Brazilian prosecutors accused former President Luiz Inacio Lula da Silva of influencing the tender process in Saab’s favor. Lula, who has since returned to the presidency, and his legal team have dismissed these allegations as “political persecution.”
The Brazilian Air Force’s decision to select the Gripen over competing offers from Boeing’s F-18 Super Hornet and Dassault Aviation’s Rafale resulted in a $5.4 billion contract for 36 fighter jets. The agreement includes provisions for future production of Gripens in Brazil.
Initial deliveries of the aircraft have already commenced, with the full fleet expected to be in Brazilian hands by 2027. The deal has been seen as a significant boost to Brazil’s domestic aerospace industry.
Following the news of the DoJ inquiry, Saab’s shares experienced a notable decline of 6.38% in the market.
As this story develops, stakeholders in both the defense and political spheres will be closely monitoring the outcome of the U.S. investigation and its potential implications for international defense procurement practices.
