Brazil’s top finance official is being roped into a growing scandal over Petroleo Brasileiro SA’s $1.19 billion purchase of a Texan plant, the latest in a string of troubles plaguing the company’s money-losing refining unit.
Brazilian presidential hopeful Eduardo Campos said the country needs to reassess the political role of the Mercosur trade group, devise a long-term strategy for fiscal policy and avoid fighting inflation with measures he described as a “handbrake.”
Co. “vehemently denies any irregularity in the contracts signed with Petrobras, which were won legitimately,” according to e-mailed response today to questions from Bloomberg News. * Odebrecht was not notified of any questions stemming from an internal Petrobras audit of contract, company says * The reduction in the scope of the contract was due to Petrobras’ disinvestment abroad, Odebrecht says in e-mail * NOTE: Petrobras internal audit reveals irregularities in contract with Odebrecht, O Globo reports today * Link to article: http://glo.bo/1jOxJFP * Petrobras renegotiated contract signed in Oct. 2010 to reflect updated portfolio of assets and need for services at subsidiaries outside Brazil, Petrobras said in an e-mailed response today to questions from Bloomberg News. * Contract renegotiation in Jan. 2013 considered internal audit, Petrobras said via e-mail * Original contract allowed co. to request services in 9 countries up to maximum limit of $825.7m, according to Petrobra
Brazil’s former Cabinet Chief Dilma Rousseff has pulled into a tie with former Sao Paulo opposition governor Jose Serra ahead of October’s presidential election, according to an O Globo and Estado de S. Paulo survey released today.