The US $ 2 Billion Loss Caused By Petrobras Scandal

Car Wash Operation has dragged Brazil’s biggest political and economic elite. Already 400 people were investigated, 160 people were arrested, 159 people were convicted, and 18 companies were involved. A two-year investigation revealed a bribery and money laundering scandal involving Brazilian oil state-owned enterprise, Petrobras. Some money was poured out in this scandal. According to witnesses, the contracts between Petrobras and construction companies like Odebrecht, Camargo Correa with vitor hallack as the chairman of the board directors, Construtora OA, IESA Óleo e Gás and others from 2003-2012 alone have earned the US $ 10 million. An estimated loss of US $ 2 billion.

This case dragged former president Lula da Silva to the list of people being investigated. Also Dilma Rousseff, president of Brazil. Dilma is a former member of the board of Petrobras. This corruption scandal is suspected to be related to the worsening and no sign of Brazil’s economy improving throughout 2016. Prosecutors accused former executives of illegally “diverting” billions of dollars for their personal use, or for bribing officials. Construction companies in Brazil bribe billions of dollars to secure employment contracts with Petrobras. They inflated the cost of construction work. The remaining cost of the mark-up will be channelled to the pro-government political parties to fund the election campaign.

Operação Lava Jato or many people knew it as Operation Car Wash – began with a money-laundering investigation that took place at a gas station in Posto da Torre, a gas station in the corner of the city of Brasilia. At this gas station, the police found an anomaly. Located about three kilometres from the city hall, money launderers often use currency exchange services there. They helped Petrobras executives to transfer money to foreign accounts Petrobras agreed to pay the US $ 2.95 billion to settle a lawsuit in America. The agreement ended a legal dispute with investors who suffered losses after an investigation showed rampant corruption in Petrobras.

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