Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) Scam Received Huge Financial Aid From The U.K.

The scam involving Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) seems to be going too far from here. The Guardian recently reported that the Government of U.K. infused a huge sum of money into the controversial Brazilian energy project. The project scam, which is said to be the biggest one in the history of Brazil, has now engulfed even the business and political elites.

Top technical indicators for PBR.

Money-Laundering and Bribery Charged Indicted

The scandal involves alleged charges such as money laundering and bribery, which has taken into claws, some of the senior most executives of Petrobras as well as a few politicians

U.K.’s regular financial help to oil & gas companies

. According to The Guardian, UK provided huge financial assistance to Brazil’s state owned company in a range of deals. The most eye-popping of these assistances is a loan worth $52m (£35m), which was underwritten by one of the taxpayers in the year 2005. It is the amount that helped in creating one of the largest oil platforms of the world, namely P-52.

Also, this is the same construction that is named among the principal projects through which huge amounts f bribery have been created.

It is not the first time that U.K. has provided financial aid to an oil and gas company. It has been doing so in the past through its two bodies, viz. UK Trade and Investment (UKTI) and UK’s export finance agency (UKEF). Financial assistance to P-52 also came from UKEF. Meanwhile, the Brazil-based UKTI representatives allowed the companies in securing the contracts. Among many of these companies was Rolls-Royce Holding PLC (ADR) (OTCMKTS:RYCEY) as well.

Last of all, UKEF granted £1.7bn in the form of financial aid to the projects involving fossil fuel, across the world. This has been done from Saudi Arabia petrochemical plants to the Russian pipelines.

The Petroleo Brasileiro Petrobras SA scandal has reached to an extent of attracting mass protests throughout Brazil. The seriousness of scandal and political involvement can be analyzed from the fact that the Supreme Court of the country has put under its lens, President Dilma Rousseff as well, for the alleged involvement of some of the members of her party in the scandal.

About the Author

Erica is a graduate of New York University's school of Journalism. She joined US Markets Daily as a general assignment reporter in January of 2008.

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