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Brazil politicians in huge ‘oil kickback’ probe | |
(about 5 hours later) | |
Brazil's chief prosecutor has asked the Supreme Court to investigate 54 people, including politicians, for alleged involvement in a huge kickback scheme at the state-run oil firm Petrobras. | Brazil's chief prosecutor has asked the Supreme Court to investigate 54 people, including politicians, for alleged involvement in a huge kickback scheme at the state-run oil firm Petrobras. |
Investigators allege firms paid inflated prices for Petrobras contracts and money was funnelled to the ruling Workers Party (PT) and its allies. | Investigators allege firms paid inflated prices for Petrobras contracts and money was funnelled to the ruling Workers Party (PT) and its allies. |
This has been denied by the party and President Dilma Rousseff. | This has been denied by the party and President Dilma Rousseff. |
The politicians' names were not released by prosecutor Rodrigo Janot. | The politicians' names were not released by prosecutor Rodrigo Janot. |
The move takes Brazil's biggest corruption scandal, which has so far focussed on companies, into the political sphere. | The move takes Brazil's biggest corruption scandal, which has so far focussed on companies, into the political sphere. |
The scandal has led Petrobras' shares to drop and the company has lost about $100bn (£65bn) in value since September, with the crisis casting a long shadow in South America's biggest country, the BBC's Julia Carneiro reports from Rio de Janeiro. | The scandal has led Petrobras' shares to drop and the company has lost about $100bn (£65bn) in value since September, with the crisis casting a long shadow in South America's biggest country, the BBC's Julia Carneiro reports from Rio de Janeiro. |
'Operation Carwash' | 'Operation Carwash' |
Mr Janot asked for 28 separate inquiries to be opened into the activities of politicians who allegedly benefitted from the alleged scheme. | Mr Janot asked for 28 separate inquiries to be opened into the activities of politicians who allegedly benefitted from the alleged scheme. |
"Those who must pay will pay. We're going to investigate. This will be a long process, we're just now beginning," he told reporters. | "Those who must pay will pay. We're going to investigate. This will be a long process, we're just now beginning," he told reporters. |
Last month, PT treasurer Joao Vaccari Neto was questioned over the alleged scheme and then released. | Last month, PT treasurer Joao Vaccari Neto was questioned over the alleged scheme and then released. |
This followed an accusation by a former Petrobras executive that Mr Neto had diverted money from the company into the coffers of the party and its allies. | This followed an accusation by a former Petrobras executive that Mr Neto had diverted money from the company into the coffers of the party and its allies. |
The PT later issued a statement, saying the accusations against him were unfounded lies and the party only received legal contributions. | The PT later issued a statement, saying the accusations against him were unfounded lies and the party only received legal contributions. |
President Rousseff has personally urged a thorough investigation. | President Rousseff has personally urged a thorough investigation. |
She chaired the board of the company for seven years when much of the corruption is believed to have taken place. | She chaired the board of the company for seven years when much of the corruption is believed to have taken place. |
Under Brazilian law, politicians and cabinet members can only be tried by the Supreme Court. It is made up of four judges, and a fifth is expected to be appointed soon by Ms Rousseff. | Under Brazilian law, politicians and cabinet members can only be tried by the Supreme Court. It is made up of four judges, and a fifth is expected to be appointed soon by Ms Rousseff. |
The investigation into Petrobas - dubbed "Operation Carwash" - and any resulting trials are expected to take several years, our correspondent says. | The investigation into Petrobas - dubbed "Operation Carwash" - and any resulting trials are expected to take several years, our correspondent says. |
Analysts say because the state-owned giant has not yet been able to say exactly how much money it has lost to corruption, no-one knows for sure how much its assets are really worth. | Analysts say because the state-owned giant has not yet been able to say exactly how much money it has lost to corruption, no-one knows for sure how much its assets are really worth. |
Petrobas is one of the largest oil businesses in the world with interests in Asia, Africa and the Middle East, and production of 2.5 million barrels of oil per day. | Petrobas is one of the largest oil businesses in the world with interests in Asia, Africa and the Middle East, and production of 2.5 million barrels of oil per day. |
It has 87,000 employees and is seen as Brazil's engineering success story, helping the country to maintain control over its oil and natural resources. | It has 87,000 employees and is seen as Brazil's engineering success story, helping the country to maintain control over its oil and natural resources. |
In December, prosecutors charged executives from six of the country's largest construction firms for allegedly forming a cartel and channelling kickbacks into a Petrobras scheme to pay politicians. | In December, prosecutors charged executives from six of the country's largest construction firms for allegedly forming a cartel and channelling kickbacks into a Petrobras scheme to pay politicians. |