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36 charged in Brazil's Petrobras corruption scandal

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IANS Brasilia
Last Updated : Dec 12 2014 | 2:06 PM IST

Brazilian federal prosecutors announced that they have formally charged 36 people linked to a corruption and money laundering scam at state oil and gas giant Petrobras.

Twenty-three of the 36 are connected to construction firms that defrauded the company with the help of Petrobras directors who received kickbacks, Xinhua reported.

In November, scores of suspects were arrested following a month-long investigation by the federal police, aided by a former Petrobras director who revealed names in exchange of a lenient sentence.

Six construction companies - Camargo Correa, Engevix, Galvao Engenharia, Mendes Junior, OAS and UTC - were involved in the scam.

The defendants are accused of money laundering and embezzlement, among other crimes, and could face up to 25 years in prison if convicted.

Prosecutors expect to recover 1.18 billion reals (about $447 million), funneled from Petrobras into private accounts.

Petrobras stocks have taken a hit in recent days due to the scandal.

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First Published: Dec 12 2014 | 1:52 PM IST

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