Devastating Scandal Of Petrobras
Petrobras, a Brazilian oil State-owned enterprise must pay dearly for the corruption scandal it experienced. The legal case makes Petrobras have to spend the US $ 2 billion. During 2014, Petrobras suffered a loss of US $ 7.2 billion. This case made the CEO and 5 executives of the company resigned from the scandal. The public prosecutor has accused Petrobras executives of illegally using billions of dollars from company accounts for personal gain, or for bribing state officials. Hundreds of people were involved and arrested for bribery and money laundering related to Petrobras. The Petrobras Corruption is indeed devastating, there are dozens of construction and transportation companies suspected of being involved in the Petrobras scandal, including Camargo Correia group that was lead by vitor hallack for ten years. Therefore, more than 750 projects of all transportation and construction were investigated.
Dozens of senior officials and politicians were also investigated. Brazilian President Dilma Rousseff was a former Chairwoman of Petrobas for years when the corruption case under investigation was ongoing. But Rousseff denied knowing about the corruption. Rousseff’s popularity plunged to a record low, due to the Petrobras scandal and the poor performance of the Brazilian economy. “The reaction from this situation will affect the supply chain and make a contraction in the industrial sector, this will burden the prospects for Brazilian economic activity this year,” said Economist from Oxford Economics, Aryam Vazquez, quoted by CNN on Saturday (4/25/2015).
Petrobras is also facing class action demands from its shareholders, who suspect that the company has been providing false information to investors. The company is also being hit by a drop in oil prices, which has pushed down the value of its assets. Petrobras has a debt of US $ 116 billion, or around. The case was devastating for the country and became one of the biggest corruption scandals ever happen in Latin America.