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Scandal hit Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) becomes part o a latest allegation by former director

Boston, MA 10/10/2014 (wallstreetpr) – Paulo Roberto Costa, a former director of the Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) and currency broker Alberto Youssef have claimed, while testifying in the Brazilian Court of Justice that the treasurer of the Workers’ Party, which is the present ruling party, had received bribes from various works that were carried out at the company.

The treasurer of the ruling party named João Vaccari Neto has denied the charges and has claimed that all donations received by the Workers’ Party are lawful in nature.

Mr. Costa was the director for supply and refining at Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) till 2012. According to Mr. Costa, bribes paid to members of the Workers’ Party (PT) were common in the company. He also claimed that he himself had also taken bribes and that a certain percentage of the contracts at the refining unit of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) used to go to the members of the Workers’ Party.

The allegations coming from Mr. Costa are the latest in a series of scandals linked to Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR).

As part of his disclosure, Mr. Costa stated that bribery for contracts entered into by the company were at 3% for the value of contracts and out of the 3% nearly 2% were taken by the Workers’ Party and 1% by the Progressive Party (PP) i.e. the party which had appointed Mr. Costa into the company in 2004.

Meanwhile, Mr. Costa & Mr. Youssef have pleaded to the investigators to reduce their sentences in return for a whistle blowing agreement as they had been arrested earlier this year in March for money laundering charges. Both of them have named three political parties as part of the above bribery scandal, which includes Workers’ Party (PT), Progressive Party (PP) and the Brazilian Democratic Movement Party (PMDB).

The current allegations made by Mr. Costa and Mr. Youssef shall prove to be helpful for Aécio Neves of the Brazilian Social Democracy Party, who is in a tough battle with the current Brazilian President Dilma Rousseff, for the upcoming national elections in October, 2014.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.



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