BRAZIL-PETROBRAS/PROSECUTOR Former president Lula not being investigated in Petrobras corruption scandal, prosecutor confirms

Record ID: 151998

  • Title: BRAZIL-PETROBRAS/PROSECUTOR Former president Lula not being investigated in Petrobras corruption scandal, prosecutor confirms
  • Date: 24th June 2015
  • Summary: CURITIBA, BRAZIL (JUNE 23, 2015) (REUTERS) DOS SANTOS LIMA SPEAKING TO REPORTER (SOUNDBITE) (Portuguese) PROSECUTOR, CARLOS FERNANDO DOS SANTOS LIMA, SAYING: "At the moment, the former president (Luiz Inacio Lula da Silva) is not part of investigations. Our work is based firmly in documents, proof and consistent facts. All that we have uncovered so far has been published."
  • Embargoed: 9th July 2015 13:00
  • Keywords:
  • Location: Brazil
  • Country: Brazil
  • Topics: General
  • Reuters ID: LVAA1DYZRAZLS2JOJQP8Q6VNKNPZ
  • Aspect Ratio: 16:9
  • Story Text: Former Brazilian President Luiz Inacio Lula da Silva is not being investigated in relation to a multi-billion dollar graft scandal revolving around the state-run oil company Petrobras, a leading prosecutor told Reuters on Tuesday (June 23).
    Prosecutor Carlos Fernando dos Santos Lima told Reuters his task force is not investigating Lula's ties to a construction magnate arrested in the case, as some Brazilian media have suggested could happen.
    Executives from some two dozen companies are accused in the probe of inflating the value of service contracts and funnelling the excess funds into their own bank accounts and to political parties.
    Lima said a scheme similar to one set up as state-run oil firm Petrobras may have operated at Eletrobras, specifically on major projects like nuclear reactor Angra 3 and the $13 billion Belo Monte hydroelectric dam in the Amazon.
    He also said that the investigation has also turned up evidence of corruption by more than a dozen foreign firms, including South Korea's Samson Heavy Industries Co Ltd, Swedish builder Skanska AB, Danish oil and shipping group Maersk and British engineer Rolls-Royce.
    He told Reuters that prosecutors are collaborating with the U.S. Department of Justice and the U.S. Securities and Exchange Commission.
    "The United States is concerned that corruption laws are applied in relation to foreign workers. So in this context, they want to know all the facts relating to this type of corruption, which in this case could involve Odebrecht or other foreign companies which are being investigated independently, such as Maersk and other U.S. companies such as Rolls-Royce. So all the relevant facts which are of interest to them (the United States) for whichever reason, have been supplied to U.S. prosecutors. We gave them all the information," Lima explained in his office in Curitiba in the South of Brazil.
    He also explained that investigators are collaborating with foreign firms, and are willing to exchange leniency agreements for help in furthering internal investigations.
    "Our main interest regarding foreigners is that they help us in our internal investigations. We are even willing to sign leniency agreements with foreign companies if they will give us facts, names and documents which could help us in our internal investigations. We are willing to draw up leniency agreements which could provide protection to their executives," said Lima.
    "Through collaboration and leniency agreements we have recuperated or been promised a total of 600 or 650 million reais (194 or 211 million U.S. dollars), which means that certain collaborators are already returning these sums to us without our having to enter into years of investigations and decision-making," Lima added.
    None of the companies immediately responded to requests for comment.
    Deflecting speculations regarding Lula's involvement in the scandal, Lima stressed that the former president would be investigated like any other figure, should hard evidence call for such.
    "At the moment, the former president (Luiz Inacio Lula da Silva) is not part of investigations. Our work is based firmly in documents, proof and consistent facts. All that we have uncovered so far has been published," said Lima.
    The 16-month old investigation focusing on bribes at state-run oil company Petrobras has already jailed some of Brazil's most powerful executives, including the CEO of Latin America's largest engineering firm Odebrecht SA on Friday, and implicated senior lawmakers from President Dilma Rousseff's Workers' Party.
    Lima said prosecutors were also investigating whether the scheme extended to contracts the engineering firms had with state-run electric utility Centrais Eletricas Brasileiras SA, or Eletrobras.
    They are specifically looking into nuclear power plant Angra 3 and the massive Belo Monte hydroelectric dam in the Amazon, he said.
    Both projects are still under construction and have been hit with multiple delays.
    Investigations are likely to go on for at least two more years, Lima said, with many more charges to come.
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