Over the last couple of years, Brazil has been inundated with one corruption scandal after another. The government responded with “Operation Carwash,” sort of like our “drain the swamp.”
PetrĂ³leo Brasileiro, Brazil’s state-controlled oil company, said on Wednesday that it had agreed to pay $2.95 billion to settle a shareholder lawsuit in the United States over a corruption scandal that has ensnared dozens of politicians and corporate executives, including two former Brazilian presidents.
Prosecutors, in a long-running investigation known as Operation Carwash, have claimed that a small number of top officials at the company, known as Petrobras, conspired with a group of other companies to overcharge Petrobras for construction and service work, receiving bribes in return.
The ensuing scandal and vast investigation has implicated dozens of high-level figures like former [p]resident Luiz InĂ¡cio Lula da Silva and his successor, Dilma Rousseff. Corruption allegations have also dogged the current president, Michel Temer, and several of his close allies.
Petrobras officials believe [that] nearly $3 billion in bribes [was] paid as part of the scheme, which allegedly included gifts of Rolex watches, $3,000 bottles of wine, yachts, helicopters[,] and prostitutes.
The company said on Monday that it was a victim of the bribery scheme and had already recovered 1.475 billion Brazilian rea[l]s, or about $449 million, in restitution. Petrobras said it would “continue to pursue all available legal remedies from culpable companies and individuals.”
This is good news for a couple of reasons:
1) It protects foreign investors, the necessary ingredient for future growth. Like any other growing economy, Brazil needs to attract money, and this settlement is a sign of respect toward these and future investors.
2) It shows that the anti-corruption campaign is serious. As my friend in Brazil said, it looks as if we are washing one corrupt car at a time. It’s good to see Brazil get serious about corruption.
Cheers for Brazil. I hope other Latin American countries learn from this experience.