Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR): Suspects Returning Loot

Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is expected to receive millions of dollars in cash reimbursement from returned loot. A former executive of the Brazilian oil giant has already started returning the money he obtained irregularly during his service at Petrobras. While some suspects have admitted having looted the company, others have denied wrongdoing, but the process to recover corruption money continues.

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Pedro Barusco, a former executive manager of engineering at Petrobras, is the first suspect to have kicked off the process of returning bribes he received during his tenure at the company. He has already handed over more than $58 million to Brazil federal prosecutors. The step is part of Barusco’s agreement to cooperate with the investigators to recover the money looted from Petrobras. At least a dozen suspects have agreed to corporate in the financial recovery efforts and they are also expected to implicate others so that more money can be recovered.

Returning loot

Barusco is expected to return a total of $100 million that he amassed via bribery in a scheme that started in 1997 and flourished by the time he quit the company in 2011. As part of the commitment to return looted cash, Barusco agreed to pay back $67.5 million to public coffer through the federal court in Curitiba. Most of the money he has already deposited is part of the $67.5 million to the public account. Barusco will return another $29.5 million through the federal court in Rio de Janeiro.

The money that Barusco looted from Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) where stashed in foreign banks in Switzerland.

Workers’ Party implicated

According to Barusco, the money he received irregularly is just a fraction of what the ruling party Workers’ Party, received irregularly from Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR). The company denied the allegations that it was part of the scheme that ran down Petrobras and promised to sue Barusco.

Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is currently soaked in debts that run to more than $130 billion. The company has been trying to divest some assets to raise funds to settle its debt obligations.

Brown Terrel

Brown Terrel

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.