Martinelli-favored construction giant linked to Brazil scandal

BRAZIL’S  state owned Petrobras has decided to suspend the conclusion of new contracts with 23 companies linked to a major scandal of corruption, bribery,overruns and kick backs.

Among the 23 vetoed construction companies is Norberto Odebrecht the prime contractor for the Ricardo Martinelli administration, with participation in projects exceeding $5 billion, reports  La Prensa.
“The adoption of precautionary preventive, measures, preventive, aims to protect the company and its partners from difficult financial injury and damage to its image,” the company’s said in a statement. Some of its executives are involved in the scandal
Petrobras notified Odebrecht, Andrade Gutierrez and Camargo Correa, among others. that it respects the rights that companies have to defend or appeal. The measure will not affect existing construction projects,
Prosecutors have filed charges against 39 people, including two former directors of the state company, and many other executives and executives of the contracting companies accused of forming an extensive network of bribes with major construction firms.
Many of the allegations focus on what the forex trader convicted of bank fraud Alberto Youssef and former director of refinement Paulo Roberto Costa told the police in exchange for lesser sentences.
In his testimony Youseff claimed that the companies were negotiating with bribes in exchange for oil contracts. According to Youssef, money was gained through inflated contracts eventually destined for the ruling Workers Party and two other major political forces.
The company said the scheme could also have spread to the state pension fund. Petrobras will be the subject of an internal investigation.