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Petrobras reveals 2014 figures contain huge corruption bill


Petrobras reveals 2014 figures contain huge corruption bill


Brazilian energy giant Petrobras is facing spiralling costs related to corruption as the biggest scandal in the country’s history looks set to punch a plus-2-billion euro hole in company coffers.

The company has at last published its much-delayed by several months audited results for 2014 in a bid to shore up confidence. They show a total loss of almost seven billion euros, a third of which is due to corruption.

“From today Petrobras will once again guarantee normal relations with its investors, shareholders, and creditors, both domestic and international,” said Petrobras boss Aldemir Bendine on Thursday. “We are establishing a detailed breakdown of all the mistakes made with the company’s resources, and trying to establish the transparency the markets demand and deserve.”

Former group executives have been arrested, and no less than 13 Senators and 22 members of parliament are behind bars along with a host of civil servants. A judicial enquiry is ongoing.

To calculate its corruption-related losses Petrobras is assuming a 3% surcharge was added to all contracts signed with 27 sub-contractors who formed an illegal cartel.

They then sliced up the market between themselves, bribing Petrobras managers for contracts. Some of these commissions were then paid to political figures, most of them members of parliament for the ruling centre-left coalition according to the enquiry.

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