A PYMNTS Company

Brazil: Congressional panel clears Petrobras of wrongdoing

 |  October 27, 2015

A report approved by a congressional panel looking into the massive corruption scandal at state-run oil giant Petrobras was handed in last week. The report places the blame on suppliers and rogue employees for the widespread graft, known as “Operation Car Wash”. rather than on politicians or the company. The final report did not criticize any politicians, including those closely associated with Petrobras. It also spared Eduardo Cunha, the speaker of the lower house who is under investigation by police and prosecutors for alleged corruption.

The panel did recommend that 10 companies be probed for possibly paying bribes, including Japan’s Kawasaki Heavy Industries, the Brazilian unit of Singaporean oil rig builder Keppel Corporation Ltd, and its Singapore-based rival Sembcorp Marine Ltd.

The report has been criticized for failing to censure any politicians or two previous Petrobras chief executives. The report does however criticize the use of “an excess” of plea-bargains in exchange for reduced sentences to win confessions from key players in the case.

Source: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.