Jailed former Downstream director of Petrobras to testify in Congress about corruption in the company. This could severely affect Brazilian President Dilma Roussef’s bid for reelection By Peter Howard Wertheim

A jailed former director of Brazil’s Petrobras has named dozens of lawmakers and a governor said to have received kickbacks from Petrobras the sate-controlled giant oil firm, in revelations which could damage President Dilma Rousseff as she seeks re-election n in October.

Paulo Roberto Costa, the former head of Petrobras’ refining and supply unit who was arrested as part of a money-laundering investigation, gave the names of 49 deputies, 12 senators a state governor and several major construction companies implicated in the scandal to federal police.

When he was arrested police found USD 200 thousand in cash and around three hundred thousand Brazilian real spread throughout his house.

The allegations, detailed in major Brazilian newspapers practically every day, come with Rousseff battling to regain the initiative from environmentalist Marina Silva, whom polls see as winning an October 26 run-off vote.

Rousseff told the local press that former director Costa was fired from Petrobras because she (Rousseff) and Costa no longer had any “affinity”. Rousseff is a former Mines and Energy Minister and Chairman of Petrobras of Directors.

The former director of Brazil’s Petrobras has named dozens of lawmakers and a governor said to have received kickbacks from the state-run oil firm, in revelations which could damage President Dilma Rousseff as she seeks re-election next month.

The allegations, detailed in major Brazilian newspapers come with Rousseff battling to regain the initiative from environmentalist Marina Silva, whom polls see as winning an October 26 run-off vote.

Costa finger pointed politicians from three political parties of the congressional majority—Rousseff’s Workers’ Party, or PT, the Brazilian Democratic Movement Party, or PMDB, and the Progressive Party, or PP—according to newspaper Folha de Sao Paulo.

The Estado de Sao Paulo newspaper spoke of at least 32 lawmakers and a governor belonging to five unspecified political parties.

“There was a politician knocking at my door every single day,” Costa was quoted as saying.

Costa, faces 30 years in prison, spoke to federal police investigators as part of a deal to reduce his sentence, reports said.

His deposition was sent to the Superior Court of Justice, which ruled that Congress doesn’t need the court’s approval for Costa to testify in Congress.

Costa’s testimony in Congress is expected to be a blow to President Dilma Roussefff’s bid for reelection who is tied in public opinion polls against Marina Silva, former Senator and environment minister of Roussef’s PT party.

Now Marina Silva is running for president of the opposition PSB party.

“There was a politician knocking at my door every single day,” Costa was quoted as saying.

Peter Howard Wertheim is a staff writer of Scandivanian Oil & Gas Magazine based i Rio de Janeiro, Brazil. He can be reached at: peterhw@frionline.com.br

Tags: Petrobras