As Brazil’s economy is plagued by the multi-billion dollar corruption at the country’s biggest oil producer Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), the government may offer bargain deals to local contractors in attempts to reignite economic activity, officials claim.
Petrobras has been surrounded in a corruption scandal since March 2014, as federal prosecutors accused former company executives of working with a cartel of construction firms. Charges brought against the suspects include corruption, bribery, and money laundering.
According to investigators’ allegations, a contract’s kickback scheme was being operated at Petrobras. The company’s contractors manipulated the value of its contracts, overcharging the oil producer in the process. The excess amount was shared between Petrobras’ executives and contractors; prosecutors claimed. Furthermore, high-standing public officials were also bribed.
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