The Rising Influence of Rising Affluence

[DewDiligence]

PBR delays earnings release amid corruption scandal:

http://online.wsj.com/articles/petrobras-former-director-arrested-in-corruption-investigation-1415968811

A widening probe into alleged corruption at Brazilian oil giant Petróleo Brasileiro SA has ensnared another former executive and touched some of the most powerful construction firms in the country, in a controversy that threatens to upend the second term of recently re-elected President Dilma Rousseff .

Federal police on Friday arrested 18 people, including Renato Duque, former director of engineering and services at Petrobras. Authorities allege he and others were part of a bribery and money-laundering scheme that has siphoned hundreds of millions of dollars from the state-owned oil firm into the pockets of employees, contractors and politicians.

…The U.S. Securities and Exchange Commission is carrying out a civil investigation into alleged wrongdoing at Petrobras and has been cooperating with the task force of Brazilian prosecutors working on the case for the past month, according to Brazilian federal prosecutor Carlos Fernando dos Santos Lima. The SEC is involved because Petrobras shares are also traded in the U.S.

…Shares of Petrobras fell 2.5% Friday in New York. The shares are down about 30% since Oct. 1.

Surprise? No! I’ve avoided investing in PBR because of this kind of problem (#msg-51214642).