Portugal Arrests Suspect in Petrobras Probe
March 21 2016 - 9:03AM
Dow Jones News
By Rogerio Jelmayer
Portuguese police arrested a man in Lisbon in connection with a
massive corruption investigation into Brazil's state run oil
company PetrĂ³leo Brasileiro SA, or Petrobras, Brazilian prosecutors
said Monday.
Raul Schmidt Felipe Junior, who has dual citizenship in Brazil
and Portugal and was arrested Monday, is being investigated for
allegedly paying bribes to former directors of Petrobras,
prosecutors, who are working with Portugal's authorities, said in a
news release.
Mr. Felipe Junior left Brazil after an arrest warrant was issued
for him in July 2015, according to Brazil's prosecutors.
Known as Operation Car Wash, the corruption probe began in March
2014 to investigate allegations of overcharging in contracts signed
by Petrobras and some construction companies.
The investigation has ensnared a string of major political and
business figures. Prosecutors say crooked suppliers and Petrobras
insiders colluded to siphon billions from the company in part to
help bankroll the ruling Workers' Party, or PT, and its allies in
Congress, allegations the political parties deny.
According to Brazilians prosecutors, Mr. Felipe Junior, who
represented international companies seeking exploration contracts
from Petrobras, acted as an agent for the payment of bribes to
Petrobras officials. Prosecutors didn't identify the international
companies.
Representatives for Mr. Felipe Junior weren't immediately
available for comment. His lawyer has previously denied his client
committed any wrongdoing, according to local media.
Brazilian authorities said they would start extradition
proceedings against Mr. Felipe Junior.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
March 21, 2016 08:48 ET (12:48 GMT)
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