Petrobras scandal probe nears Brazil’s former national president Lula

Petrobras scandal probe nears Brazil’s former national president Lula

The Petrobras bribes-for-inflated contracts corruption scandal on Monday claimed another prominent head and came closer to embroiling one of the major figures of Brazil’s recent political history, according to Reuters.

First the country’s Justice Minister Jose Eduardo Cardozo resigned from his post following pressure from the ruling Workers Party which has seen a number of its members investigated, charged and some convicted for their parts in the widespread web of graft surrounding Brazil’s state oil company.

Then the same day a letter from the chief investigator was made public in which he called for the probe to include popular former national president Luiz Inacio Lula da Silva, widely known as Lula.

Prosecutors say they suspect that Lula received gifts from some of the engineering firms – Petrobras contractors – which were already caught up in the investigation.

Lula was president from 2003-2010.

The bad news came just three days after a bright spot for Petrobras with the news that the company on Friday secured a $10bn loan from the China Development Bank (CDB).

Part of the terms of the deal is that Petrobras will supply crude oil to Chinese firms.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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