Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) Former Execs Drowning Deep In The Corruption Scandal

The political establishment of Brazil has been hit badly by the huge corruption scheme of its largest company Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), but the former executive decides to remain mum. On being questioned by The Wall Street Journal, the jailed former Director of Services at the company, Renato Duque did not answer any questions regarding his hand in the sleaze. Renato Duque has been put behind the bars for his alleged role in fraud and money laundering.

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The Gripping Situation for Petroleo Brasileiro Petrobras SA’s Former Execs

Apart from Renato Duque, three other executives of the company have already been charged in the case. The enlarged and wider investigation claims that he too played a vital role in the alleged corruption scam. He is charged of having 22.5 million euros or $23.8 million in his Monaco bank accounts. All the assets under doubt and investigations have been seized.

Earlier, an Engineering and Services Executive of the company, Pedro Barusco revealed in front of the lawmakers that he had accumulated approximately $100 million as bribes, in the past 10 years or so. The case attracted media attention further when he revealed that the ruling Brazilian political party had got twice the share.

The Corruption Charges: A Background of the Case

According to the prosecutors, some of the contractors at the company created a lobby so as to blow up the contracts’ value in relation to a few crucial oil company projects from 2004 to 2012. In return, some of these oil companies gave a part of proceeds to the executives of Petrobras Brasileiro Petrobras, the political parties as well as a few politicians in Brazil. At times, these proceeds were concealed in the form of campaign donations as well.

While a few of the accused people are co-operating with the proceedings of the case, a lot of politicians, companies and the ruling Brazilian political party, viz. the Workers’ party, have all denied their role.

About the Author

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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