Petrobras Seeks Access to Testimony of Former Executive
7:11p ET September 8, 2014 (Dow Jones)
Petrobras Seeks Access to Testimony of Former Executive
By Will Connors
RIO DE JANEIRO--Brazil's state-run oil company Petroleo Brasileiro SA said late Monday it has requested access to the testimony of a jailed former Petrobras executive who has made allegations of a massive kickback scheme at the company.
The jailed former Petrobras executive, Paulo Roberto Costa, alleged that dozens of prominent Brazilian politicians took part in a kickback scheme for Petrobras contracts, according to a story published Saturday by a Brazilian weekly. Mr. Costa offered the names as part of a plea deal with investigators, according to the Veja magazine report.
In its first comments since the allegations were made, Petrobras said in a statement it is cooperating with authorities and has requested access to Mr. Costa's testimony from the federal judge involved with the case.
"It is in the interest of company management to see the conclusion of all the ongoing investigations by [the government]," the company said.
An attorney for Mr. Costa didn't respond to requests for comment.
Mr. Costa's allegations, which implicate dozens of Brazilian politicians, are the latest in a string of corruption scandals tied to Petrobras, Brazil's biggest company. The scandals have tainted the re-election campaign of President Dilma Rousseff ahead of October elections. Ms. Rousseff has been forced to address concerns about Petrobras regularly at campaign stops.
Petrobras is also the subject of two congressional inquiries, convened to investigate the 2006 purchase of a Texas refinery.
Shares closed down 5.31% in New York Monday.
Mr. Costa was Petrobras's supply and refining director until 2012, and was arrested in March for allegedly participating in a money-laundering operation.
In its statement Monday, Petrobras said it "continues working normally across all of its operations to meet its business goals," and that "irregular acts that may have been committed by a person or group of people, whether employees of the company or not, do not represent the conduct of Petrobras as an institution or of its workforce, made up of thousands of employees."
Write to Will Connors at william.connors@wsj.com
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