SBM Offshore paid $42M in kickbacks to Petrobras directors

About $42 million worth of kickbacks was paid by Dutch company SBM Offshore to former employees and directors of Petrobras in exchange for business with the state oil company between 1997 and 2012. Using sales agents and offshore accounts, SBM Offshore paid to secure contracts for drillships and obtain technical tip-offs for business advantage.

These allegations are the findings of the Federal Prosecutor's Office (MPF) in Rio de Janeiro. Thirteen people, including SBM executives, were indicted Thursday (Dec. 17) on charges of corruption, tax evasion, money laundering, criminal conspiracy, and acting as criminal accessories. One of them was ordered to prison and is wanted by INTERPOL.

A total of five search and seizure warrants and four warrants for detention of suspects were served by Federal Police in Rio and Angra dos Reis, south Rio de Janeiro state, as part of Operation Black Blood. Police arrested Paulo Roberto Buarque Carneiro, a former Petrobras employee who became a member of several of the company's bidding committees with the purpose of favoring SBM, and sold insider information. The MPF has also filed for the arrest of former Petrobras directors Jorge Luiz Zelada and Renato Duque, who are already jailed as a result of Operation Car Wash for related charges.

Switzerland accounts
According to federal prosecutors, the kickback payments were facilitated by Faercom and Oildrive companies, who operated as SBM sales agents in Brazil. The two companies are run by Julio Faerman and Luis Eduardo Campos Barbosa da Silva, who acted as bagmen in the scheme. A total 38 bank accounts were identified to have been involved in the transactions, most of them held with three Swiss banks.

Renato de Oliveira, one of the prosecutors in the case, explained: “The money was passed on to offshore company accounts linked to these sales agents. These companies had no contracts with SBM and have not issued invoices.”

These findings are based on plea bargain statements, articles of incorporation of offshore companies linked to former Petrobras employees, and bank statements.

Executives
An arrest warrant was issued against Robert Zubiate, SBM Vice-President for the Americas, to prevent him from destroying evidence. He also received illegal commissions for each contract signed. “At some point, in connection with four or five contracts, the same kickback percentage paid to Petrobras employees was also paid to the executive,” the prosecutor said.

Also charged are SBM executives, Didier Keller and Tany Mace, who started the offshore payment scheme and are currently retired. In a press statement, SBM declined to comment on the charges, merely saying that none of its Brazilian offices has been searched by police.

Campaign donation
The MPF is also investigating a $300,000 SBM donation to the Workers' Party (PT) presidential campaign in 2010. The money was received by Renato Duque and illegally funneled by Oildrive agents to former Petrobras manager Pedro José Barusco. The party's press office denied the allegations, saying all donations “were in strict compliance with legal standards and have been reported to the Electoral Court.”

“Barusco carried out illegal payoffs. He was due to collect $300,000 worth of kickbacks here in Brazil. Instead, he let Duque collect it and funnel it to the campaign,” the prosecutor explained. Oliveira said this information was verified by plea bargain statements given by Zelada and Faerman at the Federal Criminal Court of Rio, but the prosecutors are still investigating how the money got to the party coffers. “It was huge money, even they don't remember [how much],” the prosecutor said.

Contacted to comment on the charges against its contractors and former employees, Petrobras, which prosecutors say has cooperated with the investigation, has not replied as of the publication of this story. Agência Brasil has also tried to contact the indictees.

Translated by Mayra Borges