Petrobras agrees to pay $853mn to settle bribery case

Brazilian state oil company Petrobras has agreed to pay more than $853 million in penalties for bookkeeping violations related to bribes to politicians and political parties.

One of South America’s biggest scandals has come to conclusion with an $853.2 million settlement agreed between Petrobras and Brazilian and U.S. authorities.

Most of payment – around $632 million – will go to the Brazilian Federal Prosecutor’s Office. Another $171 million will be paid to the U.S. Department of Justice and the Securities and Exchange Commission, reports Bloomberg.

The U.S. Department of Justice said that Petrobras agreed to pay "to resolve the U.S. government's investigation into violations of the Foreign Corrupt Practices Act in connection with Petrobras's role in facilitating payments to politicians and political parties in Brazil."

Petrobras, one of South America’s most powerful oil companies, was at the centre of a huge investigation launched in 2014 known as Lava Jato, or Car Wash, that also led to the imprisonment of former President Lula da Silva.

Due to the huge losses caused by the ongoing investigation, Petrobras has been forced to offload several business, including the sale of its downstream assets in Argentina, Chile and Paraguay.