Home Corruption Car Wash Petrobras, US$ 200 million received back from Car Wash anti-corruption operation

Petrobras, US$ 200 million received back from Car Wash anti-corruption operation

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Petrobras will receive about around 650 million reais ($201 million) in funds that have been recovered by Car Wash (Lava-Jato) corruption investigation, said on Tuesday (Dec.5)  the Federal Prosecutors Office. The amount will be delivered at a cerimony in Curitiba, capital of Parana state, headquarters of Operation Car Wash. This amount adds to US$ 600 million already delivered to Petrobras,

This operation is an ongoing criminal investigation (initiated arch 2014)  being carried out by Brazil’s Federal Police andhe Federal Police and judicially commanded by Judge Sérgio Moro. Initially a money laundering investigation, Car Wash has expanded to cover allegations of corruption at the state-controlled oil company Petrobras, where some executives accepted bribes in return for awarding contracts to construction firms at inflated prices.

The operation has included more than a hundred warrants for search and seizure, temporary and preventive detention and coercive measures, with the aim of ascertaining a money laundering scheme suspected of moving more than R$30 billion (around US$9 billion).

Due to the revealed fraud, Petrobras had to delay  reporting its annual financial results for 2014, and in April 2015 released “audited financial statements”  admitting  $2.1 billion in bribes and a total of almost $17 billion in write-downs due to graft and overvalued assets,[ which the company characterized as a “conservative” estimate of the actual impact. Had the report been delayed by another week, Petrobras bondholders would have had the right to demand early repayment. Petrobras also suspended its dividend payments for 2015. Due in part to the impact of the scandal, and also to its high debt burden and the low price of oil, Petrobras was also forced to cut capital expenditures and announced it would sell $13.7 billion in assets over the next two years,