The Brazilian Ministry of Finance has uncovered more than US$9 billion in suspicious transactions involving Petrobras, the state oil giant at the center of a massive corruption scandal, a newspaper reported on Wednesday.
The finance ministry audit has identified suspicious deposits and withdrawals totaling 23.7 billion reais (US$9.16 billion) between 2011 and this year.
The paper said the transactions involved thousands of people and companies who did business with Petrobras, Brazil’s biggest company, over that period.
According to the ministry auditor, COAF, cash transactions alone totaled US$350.6 million, Globo said.
The auditor’s office told reporters that only its chairman could confirm the sums, adding that he was away and unable to comment.
The report came as investigators interview dozens of suspects, including two former Petrobras directors and senior executives of some of Brazil’s leading companies, in connection with a multibillion dollar corruption scandal dubbed “operation car wash.”
Investigators said that as much as US$4 billion has been allegedly paid to members of the ruling Workers Party and other politicians from 2004 to 2012 to buy influence with cash taken off the top of inflated contracts given to Petrobras.
The head of Brazil’s accounts watchdog, Augusto Nardes, estimated on Monday that the kickbacks paid via inflated contracts could have totaled more than US$1.16 billion.
“Based on the figures we have, it’s certainly the biggest scandal in Brazilian history,” Nardes told Globo.
Some of those arrested have offered to cooperate with the investigation and also pay back in some cases tens of millions of dollars as they seek a plea bargain.
Five suspects, including Paulo Roberto Costa, a jailed former Petrobras director who exposed the massive scope of the alleged payments, were reported to have promised to repay US$165 million.
Petrobras might have to write down as much as US$15 billion of assets after an investigation into alleged corruption triggered a reassessment of its balance sheet, UBS AG said.
Refinery cost overruns that are under investigation in Brazil might alter the value pegged to some of the units, UBS analysts Lilyanna Yang and Carlos Herrera wrote in a note to clients.
They downgraded the company to the equivalent of “hold” from “buy” in the note.
Petrobras could “potentially” lose its investment-grade credit rating and sell exploration and production assets or shares if it has trouble tapping international debt markets, they said.
“We see the need for a sizable impairment that could be as big as [US]$10 to [US]$15 billion when looking into Petrobras refinery costs,” the analysts wrote. “Petrobras was required in our view to investigate potential wrongdoing, review its internal controls and reassess the fair value of its investments.”
Petrobras has said it is cooperating with the investigations and is a victim.
Petrobras shares rose 1.4 percent to 12.62 reais at 3:54pm in Sao Paulo. They are down 26 percent this year.
Additional reporting by Bloomberg
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