Petrobras could be liable to $1.17 billion in fraud

Account books under consideration at the Court of Audits (TCU) could expose $1.17 billion in kickbacks from overpriced transactions at Petrobras. Evidence of overpricing was found in several contracts of the state-owned oil company, involving chiefly refineries and platforms, said TCU chairman Augusto Nardes. The amount is inclusive of a $620 million loss with the purchase of a refinery in Pasadena, Texas.

Nardes pointed out that the cases are still open for further consideration by the TCU. In his opinion, the accounting inconsistencies at Petrobras could be the biggest scandal ever judged by the court. He also told Agência Brasil that the TCU will ask the Supreme Federal Court (STF) to confirm the constitutionality of a presidential decree that simplified bidding rules for Petrobras. Per the current rules, three companies are invited to bid, and Petrobras chooses one of them. “The current provisions leave more room for wrongdoing,” he said.

He has already had conversations with STF justices, including Chief Justice Ricardo Lewandowski. “I'll urge them to make a decision that can really prevent certain incidents in the recent past of the company, especially those involving Pasadena [refinery], from happening again,” he added.

In his view, overturning President Dilma Rousseff's decree would be a gesture of accountability to all Brazilians.

Translated by Mayra Borges