Brazil Builders Staggered By Petrobras Scandal

The Brazilian government has barred the country’s most powerful contractors and engineers from receiving payments under existing Petrobras contracts, from borrowing money from Brazilian-based banks or credit institutions, and from bidding on any Petrobas or federal public works contracts until they are cleared of accusations that they obtained inflated and fraudulent contracts from oil giant Petrobras over the past decade.

In addition, five companies must return a total of Reais 4.47 billion (US$1.5 billion) to the Treasury, as well as pay collectively Reais 3.19 billion (US$1.1 billion) in damages and civil fines. These five companies may not enter into future contracts with local state governments.

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About Bill Reinhardt

Editor of Public Works Financing newsletter
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