August 13, 2014 at 2:46 pm #27387
For those of you that are interested and can access the Financial Times, there was an article on August 10, 2014 titled Petrobras: Tarred by Corruption.August 18, 2014 at 5:40 pm #27388
Does not surprise me a bit. I have argued long time ago that I think PBR was a poor choice for a variety of reasons I outlined before.
It’s like Verbundkraftwerke in Austria. A hydroelectric power producer monopoly- should be cashcow. But mostly government owned is managed to serve the majorityowners interest.August 19, 2014 at 9:18 pm #27390
The abuse by dishonest government appointees and/or insiders at PBR apparently has been primarily in purchase, construction, and service contract kickbacks, with large sums involved. Brazilians who want an honest system have a tough job ahead to clean up all the bad habits that exist in public service. So many public servants have never been exposed to the private sector…
this quote is from a Stansberry email I received August 11:
Over the weekend, the Financial Times published a long exposé on how deep the corruption goes at Petrobras… The government isn’t just misallocating funds… It’s also allegedly placing top officials, pressuring for campaign donations, and laundering money.
The federal police are in the middle of an enormous investigation into Petrobras’ corruption… And the company made a mistake last year that allowed the Federal police to take action…
In May 2013, convicted black-market money dealer Alberto Youssef bought through third parties a luxury car for his friend and alleged accomplice, Paulo Roberto Costa, a former executive at state-oil company Petrobras.
But while negotiating the purchase of the R$250,000 ($110,000) Range Rover Evoque in São Paulo, they put their names together on a seemingly harmless document: a proof of address. It was the only occasion in the mountains of police investigation documents seen by the Financial Times they voluntarily appeared together.
Police raided Costa’s home, seizing the Range Rover and more than $500 million in cash. Prosecutors estimate wider corruption at Petrobras could eclipse another $440 million.
($500 million in CASH in his home? Where do you keep that pile? geez….dont get in the way of these guys, their greed is beyond comprehension.)August 19, 2014 at 9:40 pm #27391November 15, 2014 at 5:18 pm #18212
If oil prices stay at $70 ish per barrel, what viability does Pre-Sal oil have really? I suppose it continues to be good for Brazil oil independence and its commercial account. PBR however, not so much?
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