Brazilian government secretariat has initiated probe in the 39.3 billion kronor ($5.5 billion) deal signed by Saab to build and sell 36 Jas Gripen fighter jets to Brazil, local media reported Friday.
The investigation has been initiated as the total price of the jets had then gone up by $900 million (around 8.3 billion kronor in today's exchange rate).
Saab spokesperson Sebastian Carlsson has confirmed that Brazil's public prosecutors are now investigating the purchase but underlined that no suspicion of criminal activity has as of yet been announced.
“It is correct that there is a prosecutor now who is going to ask a few questions. In Brazil the possibility of reporting things and the right to have it investigated is very open to anyone. It is both common and expected that a report like this arrives,” Carlsson told Swedish public broadcaster SVT.
Carlsson said, Saab has welcomed the investigation.
“This deal is probably the most transparent deal we have done. At the end of the day it is positive that there is the opportunity for the public to have their questions answered. It creates a feeling of security,” said Carlsson.
Brazillian news daily, Folha de San Paulo said that the entire deal could be annulled if the prosecutor discovers financial irregularities.
“The higher price was due to the customer adding new requirements to the existing order during the process as well as fluctuating exchange rates,” Saab CEo Hakan Buskhe said to a Brazilian Television after the purchase.
Brazil agreed on buying 36 Gripen NG fighters that included 28 single-seat and eight two-seat Gripen NG in October 2014. The deliveries are scheduled between 2019 and 2024.