Brazil to Offer Deal with Firms Involved in Petrobras Scandal

Reuters

SAO PAULO, Aug 26 (Reuters) - Brazil will offer companies implicated in a massive corruption scandal at state-run Petroleo Brasileiro SA a deal that would include the payment of fines and compensation in exchange for doing business again with the oil producer, daily Folha de S.Paulo reported on Wednesday.

The government could receive 15 billion reais ($4.2 billion) in assets from some 20 companies that are currently unable to do business with Petrobras, according to estimates from the Finance Ministry cited by Folha.

In exchange, Petrobras would be allowed to resume paying companies for various projects.

The Finance Ministry did not respond to an email seeking comment.

A number of major infrastructure projects have been halted in Brazil, contributing to a sharp economic downturn, after the country's largest construction and engineering groups were accused of paying bribes to win contracts with Petrobras.

The government intends to issue a presidential decree allowing the companies to give some of their assets as payment of fines and compensation, Folha said. The assets would be resold by the government at a later date.

(Reporting by Walter Brandimarte; Editing by Jeffrey Benkoe)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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