A bribe scheme at Brazil’s state-controlled oil company Petrobras may have involved more than 30 top allies in Brazil’s governing political coalition, according to information from former Petrobras supply director Paulo Roberto Costa that has emerged in local press reports. A weekend report by Brazilian news magazine “Veja” said Mr. Costa cited at least 3 governors, one cabinet official, 6 senators and more than 25 congressmen in detailed information on politicians involved in kickbacks given during testimony to federal police in August. Some of the top officials cited by Costa reportedly included Energy Minister Edison Lobão, Senate President Renan Calheiros, Maranhão state governor Roseana Sarney, and former Pernambuco governor and presidential candidate Eduardo Campos, among others. Mr. Costa was arrested in March for alleged participation in a money laundering scheme. The news report in Veja said that participants in the bribe scheme received kickbacks from concessionaires that did business with Petrobras. A portion of the kickback money was returned to Petrobras, while the remainder was distributed among political allies in the governing coaliton of Brazilian President Dilma Rousseff. In response to the allegations, presidential aide Gilberto Carvalho said the information from Costa’s testimony was based on rumors and was leaked to the press to cause damage to president Rousseff’s campaign for re-election. The information on the alleged kickback scheme, which was estimated to involve up to $1.5 billion over a 10-year period, comes less then one month ahead of Brazil’s presidential election, scheduled for Oct. 5. The latest allegations, however, also hit the campaign of top presidential challenger Marina Silva, who substituted Socialist Party candidate Campos shortly after Mr. Campos’s death in a plane crash in August. According to recent polls, Ms. Silva is tied in voter support with Ms. Rousseff. Ms. Silva said the information leaked to the press was insufficient to prove the involvement of Mr. Campos. Third place presidential challenger Aecio Neves, of the Social Democratic Party, said the scheme was “the most serious allegation of corruption in recent history,” and a repeat of behavior seen in the Mensalão scandal, a political corruption scheme that resulted in jail sentences and heavy fines for several top government aides and congressional officials.




