Brazil charges 35 over Petrobras kickbacks


(MENAFN- AFP) Brazilian prosecutors charged 35 businessmen in connection with the Petrobras corruption case on Thursday, the first wave of indictments arising from the investigation into the scandal surrounding the state-owned oil giant.

The 35 are accused of being complicit in a scheme which saw dozens of politicians, mostly allies of the government, receive hundreds of millions of dollars in sweeteners from over-charged contracts involving Brazil's biggest company.

The group are the first people to be charged in the scandal, which broke following the arrest nine months ago of Paulo Roberto Costa, formerly a Petrobras director of supplies.

Costa blew the whistle as part of a plea bargain.

The prosecutors' office added further prosecutions were likely to follow after charging former Petrobras officials along with a slew of figures from leading construction and engineering firms who allegedly paid out bribes in return for winning fat contracts.

"The is the start of the investigation, we have a long way still to go," said prosecutor Rodrigo Janot.

"These people stole Brazilians' pride," said Janot, who warned the case was complex while promising a "calm, balanced, but firm and thorough investigation."

Those accused face charges of corruption, money laundering and helping to set up a criminal organization.

Executives charged included ranking officials from constructors such as OAS, Camargo Correa, UTC, Mendes Junior, Engevix and Galvao Engenharia Engineering.

They are accused of forming a "club" to rotate contracts with Petrobras and cream off cash for politicians to look the other way.

"These people not only corrupted Petrobras but other public bodies. They should therefore go to jail," said the prosecutor for southern Parana state, Deltan Dallagnol, who is heading a special unit tasked with investigating the case.

Under the alleged scheme, companies which won contracts including illicit surcharges of between one and six percent of the deal would pass the cash on to intermediaries who would set up front firms who would produce bogus contracts, services and consultancy services, with the money laundered through those firms.

Police estimate that overall the corrupt network managed to launder around $3.8 billion.


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