It is not the end, but the beginning of troubles for the scandal-hit Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) as the Brazilian Court starts the proceedings. Days after the Brazil’s Supreme Court ordered the probe to find the connection of 54 politicians to the scandal; another revelation has shocked not only the nation but the world itself. The Financial Times reported that documents presented before the Brazilian court show use of Swiss bank accounts for payment of bribes.
Money laundering through Swiss accounts
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) executive and key witness, Pedro Barusco stated in front of the court that he laundered nearly $100 million in bribes through a number of accounts held in Switzerland. It is alleged that the executives of the company along with politicians of the ruling coalition party have siphoned huge amounts of money from contractors in lieu of business deals.
As both Brazilian and Swiss prosecutors are mutually co-operating to uncover the nation’s biggest scandal that took place at Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), the case appears to be ever-widening. While the graft case has not only tarnished the image of Brazil but also Switzerland banking industry, which off late has been constantly trying to improve its image.
Meanwhile, Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) too is trying to correct its image as the newest director, Luiz Navarro, hinted at fewer political appointees on the board. He said more professional members should be included on the board as they are the people who hold high respect among the investor community.
Navarro said that the federal government has not made any demands as to how the voting should proceed. He added that eliminating corruption and clearing the contracting process is his priority, which has dragged the company into a worst-ever crisis. Amid all such promises, it appears that the market is weighing more on the bribery proceedings for now. The mood is reflective in the stock movement of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) that fell further by over 6% during the last trading day.