{"id":557,"date":"2014-09-12T18:32:17","date_gmt":"2014-09-12T18:32:17","guid":{"rendered":"https:\/\/litci.org\/en\/2014\/09\/12\/petrobras-when-corruption-rhymes-with-privatization\/"},"modified":"2014-09-12T18:32:17","modified_gmt":"2014-09-12T18:32:17","slug":"petrobras-when-corruption-rhymes-with-privatization","status":"publish","type":"post","link":"https:\/\/litci.org\/en\/petrobras-when-corruption-rhymes-with-privatization\/","title":{"rendered":"Petrobras: when corruption rhymes with privatization"},"content":{"rendered":"\n

\n\t<\/em><\/p>\n

\n\tTestimony of former director of the company puts politicians in trouble.<\/em><\/p>\n

<\/p>\n

\n\tAfter the revelation of the scandalous purchase of the Pasadena refinery in Texas, where Petrobras paid US$ 1.2 billion for the refinery, which had been purchased shortly before by US$ 42 million, another scandal promises to shake further the electoral scene. The testimony of the former Petrobras’ Executive Board member, Paulo Roberto Costa, arrested during a Federal Police operation[1]<\/a>, puts the bigwigs of politics on the spot, involving a wide range of parties, ministers and governors.<\/p>\n

\n\tPaulo Roberto Costa was arrested in March, then released and returned to jail in June. He is charged with committing a variety of offences, as holding US$ 23 million in an illegal bank account in Switzerland. Given the situation, Costa decided to save his own skin adhering to the whistleblower protection program. He had already threatened to squeal on his peers, saying that if he spoke what he knew, “there would be no elections.” Apparently he decided to tell at least part of the story.<\/p>\n

\n\tAccording to information from Veja\u00a0<\/em>magazine\u00a0[2]<\/a>, the former director of Petrobras would have reported to the Federal Police a mega-scheme of overbilling the Petrobras contracts with a number of companies and the diversion of resources to politicians and parties. A bribe of 3% on the value of the contracts would be directed to parties of the governing coalition. It’s a quite similar scheme to what has surfaced in reports of the Mensal\u00e3o<\/em> scandal in 2005[3]<\/a>, but involving much more money.<\/p>\n

\n\tThe former director of Petrobras would be responsible for signing the overpriced contracts whose resulting bribe would be delivered to the money exchanger Alberto Youssef. It is believed that an amount of US$ 4.4 billion has been laundered by Youssef, who was also arrested in March. Then, part of that diverted money would be passed on to parties of the governing coalition. The bridge between Costa and the parties would be none other than the PT treasurer, Jo\u00e3o Vaccari Neto.<\/p>\n

\n\tAlso according to the magazine, Costa would have accused three governors: Roseana Sarney (PMDB) of Maranh\u00e3o, the former governor of Rio, S\u00e9rgio Cabral (PMDB), and the former governor of Pernambuco, Eduardo Campos (PSB), dead last month, of being members of the scheme. In the list would still be the presidents of the Senate, Renan Calheiros (PMDB) and of the Representatives House, Henrique Alves (PMDB), the Minister of Mines and Energy, Edson Lob\u00e3o (all PMDB), and 24 more congressmen.<\/p>\n

\n\tThe values of the overpriced contracts are impressive\u200b. Only the Abreu e Lima<\/em> refinery in Pernambuco has an estimated spending of US$ 20 billion, equivalent to almost 20 times its original price. The Petrochemical Complex of Rio de Janeiro, COMPERJ, is also in the list.<\/p>\n

\n\tThe panic that takes over the government is understandable. Roberto Costa was a Petrobras Downstream Director from 2004 to 2012. Initially indicated by the Popular Party, from the Lula’s governing coalition, he was gaining sympathy and political influence among the various parties and entrepreneurs. Besides politicians, this new scandal inevitably touches president Dilma Rousseff, as she was Minister of Mines and Energy and chairwoman of the Board of Directors of Petrobras at that time.<\/p>\n

\n\tPublic resources, private business<\/strong><\/p>\n

\n\tFor now, the scandal boils down to the information released by the Veja<\/em> magazine, which has its own interests in this story. In addition to attacking the candidacies for president of Dilma Rousseff (PT) and Marina Silva (PSB), in order to benefit Aecio Neves (PSDB)[4]<\/a>, the magazine does not hide its political bias concerning privatization. That means, trying to associate corruption with the state owned character of the company. The repercussion caused by this scandal and the impact on the government, however, seem to give consistency to the informations leaked from the testimony.<\/p>\n

\n\tThis new corruption case shows how the governments (from the right, PSDB from 1995-2002; and from the “left”, PT from 2003-2014) use Petrobras as a true “business centre” to satisfy the hunger of the allied bourgeois parties. The distribution of key jobs among the parties and the diversion of financial resources, however, unlike what the PSDB and the media try to show, have nothing to do with the state owned character of the company. On the contrary, under the PSDB and the PT governments, progress was made towards Petrobras privatization. Currently, 53% of the company shares are in the hands of private shareholders. Corruption occurs precisely due to the narrowing of spurious relations between the state owned company and the contractors.<\/p>\n

\n\tIt also shows how the funding of political parties by large companies and contractors is one of the main causes of corruption. It is an investment made by the big business which collect their profits in the form of laws that benefit them or “winning” public tenders. This can be seen in Petrobras with the increasing participation of the private sector in the company[5]<\/a>, in addition to numerous overpriced contracts.<\/p>\n

\n\tThe allegations of Paulo Roberto Costa hit not only Dilma Rousseff but also Marina Silva, who arises as a representative of the “new politics”. However, she doesn’t think twice before trying to cover up the irregularities in which Eduardo Campos may be involved, as any “old politician” would. The PSDB, on the other hand, bears no moral right to talk about corruption, as shown by the scandals of the airport in Minas Gerais or the “trensal\u00e3o” in S\u00e3o Paulo, both properly muffled with the help of the media.[6]<\/a><\/p>\n

\n\tThe corruption at Petrobras reinforces the need to ban the funding of political parties by companies and raises the need to campaign for a 100% state-owned Petrobras under the workers’ control.<\/p>\n

\n\t_________________________<\/p>\n

\n\t[1]<\/a>This special operation is called “Lava Jato”, in English, “car washing”.<\/p>\n

\n\t[2]<\/a>Veja – a conservative magazine which defends the neoliberal policy and privatization of state owned enterprises<\/p>\n

\n\t[3]<\/a>The Mensal\u00e3o scandal was a vote-buying case of corruption that sent to jail many influential politicians from the party in power, PT (Workers Party). Mensal\u00e3o<\/em> is a neologism and variant of the word for “big monthly payment”.<\/p>\n

\n\t[4]<\/a>Dilma Rousseff (PT) is the current president, who runs for a second term. Marina Silva was the candidate for the vice presidency in Eduardo Campos’ list before his death. Now she is the PSB candidate, replacing Campos. Aecio Neves is the candidate of the rightist party PSDB.<\/p>\n

\n\t[5]<\/a>Petrobras claims to have 80 thousand employees while there are more than 200 thousand outsourced workers from contractors.<\/p>\n

\n\t[6]<\/a>Cases of corruption involving the PSDB governments of Minas Gerais and S\u00e3o Paulo. Trensal\u00e3o is a combination of the words “trem” (train) and “mensal\u00e3o” (see footnote 3) – trem-sal\u00e3o – due to the similarity between the Mensal\u00e3o scheme and the corruption in the works on the subway company of S\u00e3o Paulo.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Testimony of former director of the company puts politicians in trouble.<\/p>\n","protected":false},"author":1,"featured_media":3455,"menu_order":2065,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"litci_post_political_author":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3508],"tags":[],"class_list":["post-557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brazil"],"yoast_head":"\nPetrobras: when corruption rhymes with privatization - International Worker's League<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/litci.org\/en\/petrobras-when-corruption-rhymes-with-privatization\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Petrobras: when corruption rhymes with privatization - 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