Brazilian federal police have arrested 18 people in connection with its corruption investigation into state-run oil company Petrobras.
The investigation concerns charges of money-laundering and organised crime against Petrobras’ former director Paulo Roberto Costa, who is accused of embezzlement and corruption.
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Petrobras, which is majority-owned by the Brazilian Government, operates in exploration and production, refining, marketing, transportation, petrochemicals, oil product distribution and several other sectors.
Costa, who was arrested in March, is providing police with evidence of Petrobras’ corruption as part of a plea bargain deal.
According to the BBC, the former director alleged that the refinery division of Petrobras operated a fund that transferred money to political parties including the ruling Workers’ Party.
Police raided Petrobras’ offices in Brasilia, Sao Paulo, Parana, Minas Gerais, Rio de Janeiro and Pernambuco.
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By GlobalDataMeanwhile, the US Securities Exchange Commission and the Department of Justice are reportedly also investigating Petrobras on corruption claims.
Petrobras said in a statement that the company is undergoing a unique moment in its history.
The company said it is unable to release this year’s third quarter financial statements at this time as a result of the time needed to gain greater understanding from the ongoing investigations by the independent law firms, as well as the time required to make any adjustments to the financial statements based on the accusations and investigations related to the Lava Jato Operation and to evaluate the need for internal controls improvements.
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