Although its stocks are negotiated in the international markets, Petrobras is a Brazilian oil company mostly owned by the Brazilian Treasury. The company was founded in 1953 by former president Getulio Vargas to provide the government with oil production security.[i] Oil security would assure the country’s industrial progress in a complex geopolitical environment after the Second World War.
A culture of corruption and a weak judicial system hinder Petrobras probe
by Enrique Xavier López
In Giant—George Stevens’ 1956 Hollywood blockbuster—oil tycoon Jett Rink, played by 24-year-old James Dean, is a man blinded by greed and corruption. In this classic rise-and-fall story, Rink is able to extend his wealth and influence beyond the oil business, where even the sitting governor and U.S. Senator of Texas are at his every beck and call. The climactic scene unfolds when Rink, who in his youth was a poor wildcatter, attends an Austin gala honoring his success. After a brief squabble with his longtime rival, Bick Benedict, Rink staggers into the party drunk, takes his seat at the head table, and then passes out. All the politicians and guests leave in disgust, and an almost incoherent Rink ends up speaking to an empty room.
The disclosure last year of what was apparently just a bad business done by Petrobras – the Brazilian semi-public oil company – evolved and became one of the biggest corruption scandal to hit the country after the reinstatement of democracy in 1988. The Brazilian Supreme Court has authorized the investigation of more than 40 politicians, including the speakers of the Chamber and the Senate and a former President. They are all suspects of integrating a large kickback scheme. Parliament is also promising to carry out their own investigation too, politically unbiased and dispassionate according to them. The hearings have already started.
The subject requires a lot of explaining indeed. Apart from Petrobras’ own executives, the corruption ring also included big companies from Brazil, Europe and Asia. The scheme, based on the payment of bribes in exchange for contracts, is supposed to have managed over $ 2,5 billion. Where was the Board of Directors? And the Fiscal Board? What about the Risk Management Committee? There is also the Advisory Committee. Everyone failed to spot the wrongdoings that took place over, at least, one decade.