Energy Petroleo Brasileiro SA Petrobras (PBR) Corruption Case: Separate Investigations on Parties Agreed

Petroleo Brasileiro SA Petrobras (PBR) Corruption Case: Separate Investigations on Parties Agreed

Published By News Desk at October 8, 2016 09:21 am

Only after a short while after the Brazilian energy giant has came out of the corruption scandal massacre, it gets targeted again. The latest trouble for Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) is the approval of prosecutors’ request by the country’s top court.

The request that has been made by the Rodrigo Janot, chief prosecutor of the country, is aimed at splitting the probe of several politicians involved in the corruption scandal by grouping them by the main parties which have allegedly accepted bribes for inflating contract prices.

As reported by Reuters, the decision was made public on Thursday by Teori Zavascki, Justice of the Supreme Court who agreed to the request that the cumbersome probes would be better off if bifurcated into four sections. These four sections would involve investigations being separately carried out on the PMDB in the lower chamber and Senate, the Progressive Party (PP), and the Workers Party (PT).

According to a spokesperson of the chief prosecutor, given the large size of the Car Wash probes with each party having a different way of operating in the graft scheme, it would be more efficient that the investigations are conducted separately.

Since the probes would directly target the politicians of the Brazilian Democratic Movement Party (PMDB), the separation comes as quite adverse news for the newly elected President Michel Temer. More so, Renan Calheiros, leader of the Senate who is significant to Mr. Temer in passing the austerity program through Congress would be among those that would be under scrutiny.  The program is crucial in reducing and controlling the country’s fiscal deficit.

The slow paced investigations of the case gained much criticism and thus the latest move would speed up the investigation process of the scandal, believes Sergio Praça, a political scientist at Getulio Vargas Foundation- a leading Brazilian university.