Brazil wants $12.7 billion fine on Andrade engineering firm: O Globo

SAO PAULO (Reuters) - The Brazilian government is seeking 40 billion reais ($12.7 billion) from construction and engineering conglomerate Andrade Gutierrez SA to settle claims related to its participation in a graft scheme, newspaper O Globo reported on Sunday.

Citing calculations from members of the Office of the Attorney General and the Office of the Comptroller General, O Globo said the fine is a condition for the signature of a leniency agreement that would allow the firm to continue bidding for government contracts.

Andrade Gutierrez is one of 10 companies being investigated since March 2015 for the "Car Wash Operation," a probe into kickbacks from company executives to politicians in return for contracts at state-run enterprises, especially Petroleo Brasileiro SA .

Andrade is in talks to negotiate the terms of the leniency agreement, but the firm considered the settlement amount too high and likely to lead it to bankruptcy, O Globo reported, citing unnamed sources with knowledge of the negotiations.

Andrade Gutierrez did not immediately reply to emails and calls seeking comment.

($1 = 3.1557 reais)

(Reporting by Ana Mano; editing by Grant McCool)

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