“Car Wash” scandal: 120 convictions, over 1,200 yrs total jail terms

The year 2016 was the busiest for Operation Car Wash, an investigative task force focused on a big corruption scandal involving Brazil's state-run oil company Petrobras and other federal agencies, according to the Paraná chapter of the Federal Prosecution Service (MPF-PR), which has lead the Car Wash task force since 2014.

The prosecution service reports that 17 operations were launched in 2016, with 20 indictments filed for corruption, money laundering, and criminal conspiracy, outnumbering the activities from the preceding two years combined.

Also in 2016, Petrobras received its third reimbursement for graft losses, recovering $73.64 million in November. Since the operation was first launched in 2014, about $153.42 million has been paid back into the company coffers. The compensations are part of individual plea bargaining and corporate leniency deals closed between prosecutors and individuals or businesses involved in the scandal.

Investigations have uncovered over $1.96 billion in kickbacks, with losses that could exceed $12.27 billion. Criminal charges have already led to 120 convictions, with aggregate jail terms surpassing 1,200 years.

Since 2014, police have carried out 182 pre-trial arrests, 730 searches, and 197 bench warrants, and six people have been arrested in flagrante delicto. The actions include the arrest of the former governor of Rio de Janeiro, Sérgio Cabral, in November, as a result of cooperation with prosecutors from Rio de Janeiro.

Protection

The prosecutors leading the task force say it is the society that will protect Operation Car Wash from attempts from legislators to curb the power of prosecutors. They also point out the economic impact of corruption. “Only the society can lead the country in the right direction, with political and legal reforms that prevent further corruption scandals and put us on the right track for economic and social development,” said Car Wash Coordinator Deltan Dallagnol.

Translated by Mayra Borges