💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Brazil's Petrobras says 32 firms banned from working with it

Published 12/02/2015, 11:26 PM
Updated 12/02/2015, 11:30 PM
© Reuters. A worker paints a tank of Brazil's state-run Petrobras oil company in Brasilia
PBR
-

RIO DE JANEIRO (Reuters) - Thirty-two companies are currently banned from doing work for Brazil's state-run oil company Petroleo Brasileiro SA (SA:PETR4) because of an ongoing corruption investigation, the oil firm's head of governance João Elek said on Wednesday.

He said Queiroz Galvão Óleo e Gás could now be allowed to work with Petrobras, as the oil company is more commonly known, and hoped other companies would be able to return as well.

"Petrobras can't make it alone... it needs suppliers and companies," he told journalists.

Queiroz Galvão Óleo e Gás has been excluded from an administrative process at the CGU and could therefore be allowed to work with Petrobras, a press representative for the company said. The same representative said parent company Queiroz Galvão declined to comment on any potential leniency agreement or negotiations.

A CGU spokesman confirmed Queiroz Galvão Oleo e Gas was no longer being investigated because of lack of evidence against it. He said parent company Queiroz Galvao was not among the seven companies that had approached it to negotiate a leniency deal.

Dozens of companies are being investigated by federal prosecutors as well as the CGU and anti-trust regulator CADE as part of Brazil's largest-ever corruption scandal.

The companies and some of their executives are accused of fixing and inflating prices on contracts with Petrobras and using the excess to funnel bribes to politicians, costing the oil firm an estimated $2.1 billion.

© Reuters. A worker paints a tank of Brazil's state-run Petrobras oil company in Brasilia

Also on Wednesday, three executives tied to another company controlled by the same family as Queiroz Galvão, Galvão Engenharia, were sentenced to as much as 13 years in jail for corruption, money laundering and racketeering.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.