Korean Shipyard called into Petrobras Scandal

Dilmar Rousseff By The Maritime Executive 03-04-2015 08:11:58

Fernando Soares, a Brazilian implicated in the Petrobras corruption scandal, has called executives from South Korean giant Samsung Heavy Industries to court as part of his defense against bribery charges.

He has also called witnesses from the Netherlands, Cayman Islands and Japan.

The federal court in Curitiba heard on Wednesday that deals with a Korean shipbuilding firm allegedly involved kickbacks to former Petrobras executives, and prosecutors say Soares was the middleman for alleged bribe payments.

Neither Samsung Heavy Industries nor its executives have been charged, but prosecutors mentioned evidence a Korean company had paid bribes in corruption and money laundering charges filed late last year against Petrobras' former international director Nestor Cervero and three others.

Cervero's lawyer Edson Ribeiro said the requested witnesses had participated in a meeting with his client and could prove there had been no irregularities when Petrobras acquired drillships from Samsung Heavy Industries in 2006 and 2007.

The Supreme Court has also been asked to open investigations into 54 people, most of whom are thought to be politicians accused of benefiting from kickbacks.

President Dilma Rousseff was chairwoman of the Petrobras board of directors from 2003 to 2010, when much of the alleged corruption took place. She has denied knowing about the scheme during those years and has vowed to respect the court's independence. A recent opinion poll, however, showed three in four Brazilians believe she knew what was going on.

The scandal comes at a time when Rousseff is struggling with the nation’s weak economy, high unemployment, lower commodities prices and a drought. Petrobras has cancelled several investment projects, and oil and gas companies are finding it more difficult to obtain credit in the wake of the scandal.

The case is Brazil’s largest-ever corruption probe. Known as "Operation Car Wash," it has already led to 40 indictments on racketeering, bribery and money laundering charges. Officials have indicted two former senior managers at Petrobras and 23 executives from six of Brazil's leading construction and engineering firms.

The investigation and possible trial of politicians by the Supreme Court could take years.