Minister: corruption allegations have contaminated investments at Petrobras

Brazil's Minister of Mines and Energy Eduardo Braga admitted on Wednesday (Apr 8) that the investment program at the state-controlled oil giant Petrobras has been “contaminated with the corruption allegations” that arose from Operation Car Wash. In his view, they have brought works and projects to a halt. During a public hearing held by the Senate's Infrastructure Committee, Braga was questioned by Senators on the need for changes in the oil exploration model in the country, bearing in mind the embezzlement scheme uncovered by the police-launched probe.

“It's deplorable how our project has been contaminated the way it did, which brought along with it so many challenges that are currently being tackled by Petrobras, by the Senate, by Congress, by the Brazilian justice system, and by law-enforcement agencies. That must not mean that Petrobras isn't essential, or that the pre-salt isn't important, or that the investments are not necessary,” the minister said.

He noted the importance of guaranteeing everybody's right to due process, and also that all those held accountable should “pay for their mistakes.”

Eduardo Braga argued that Petrobras's monopoly over the pre-salt exploration should be once again debated and improved, along with the law that requires part of the machinery used in the exploration to be produced in the country.

“We need to be humble and brave enough to bring this model under debate. Surely, we must not repeat some of our errors, regardless of whether they've been committed by us or others,” the minister pointed out.

The minister went on to highlight that, after a national policy forced Petrobras to stop imports, without any sort of strategy, and start producing in Brazil, thousands of jobs were created. “This does not mean that we shouldn't revisit the countrywide legislation, because we must not mistake the legislation with its national content, which is fundamental, for the market reserve or the or for opportunity to perpetrate corruption.”

Translated by Fabrício Ferreira