RIO DE JANEIRO—Swiss authorities on Wednesday said they are
investigating units of the Brazilian construction firm Odebrecht SA
in connection with a corruption scandal involving Brazil's
state-run oil firm Petró leo Brasileiro SA, broadening an
international money-laundering investigation.
The Swiss attorney general's office alleges, in a statement,
that Odebrecht units paid bribes from accounts in Switzerland into
separate Swiss accounts held by former Petrobras directors. Swiss
authorities didn't name specific Odebrecht operating units or the
Swiss banks involved.
Swiss authorities said they have requested help from Brazilian
authorities to question suspects and "secure relevant documentary
evidence" in Brazil.
The investigation in Switzerland adds to the pressure on
Odebrecht after its chief executive, Marcelo Odebrecht, was
arrested last month by Brazilian authorities on suspicion of money
laundering and corruption in connection to the Petrobras case.
Mr. Odebrecht hasn't been charged with a crime. He is jailed in
the southern Brazilian city of Curitiba under "preventative
arrest," a tool Brazilian authorities have been using during the
case. Through his company, he has denied wrongdoing.
Odebrecht, based in Salvador, Brazil, said it would contact the
Swiss authorities to "understand the scope of the investigation and
the reason why [Odebrecht] is being inserted in the context of
irregularities committed by Petrobras executives."
"Odebrecht has every interest in clarifying the matter, but can
only express its views after having access to information," the
company said.
The company has previously denied any wrongdoing and said that
the arrest of Mr. Odebrecht was unnecessary because the company was
cooperating with authorities. Petrobras says it was a victim of the
alleged scheme and that it is cooperating with authorities.
Last year, Brazilian investigators unearthed a yearslong
corruption scheme in which they allege some of Brazil's largest
construction firms formed a cartel to drive up prices of Petrobras
contracts and kicked back some of the windfall to Brazilian
politicians, top political parties and corrupt executives at the
oil firm.
Several Petrobras executives stashed some of the money in Swiss
accounts, according to Brazilian prosecutors. One former executive,
Pedro Barusco, earlier this year returned nearly $100 million from
Swiss accounts that he amassed through the bribery scheme. Mr.
Barusco, who has cooperated with authorities and admitted to taking
bribes in public testimony earlier this year, hasn't been arrested
or charged with a crime.
After the revelations in Brazil, Swiss authorities opened their
own investigation. In March, Swiss authorities froze roughly $400
million in assets tied to the scandal and agreed to send $120
million in frozen assets to Brazil. They had unearthed more than
300 accounts at more than 30 Swiss banks they said were used to
hold ill-gotten funds.
"The initial results of these investigations indicate that the
Swiss financial center has been seriously affected by the scandal,
as numerous persons and companies that have been charged or indeed
already convicted in Brazil conducted suspicious transactions
involving accounts in Switzerland," the Swiss attorney general's
office said Wednesday.
Swiss authorities said the Petrobras scandal "has led to a far
more than average number of reports of suspicious transactions"
from Swiss banks to a Swiss government office made available for
reporting suspected money laundering.
Brazil's attorney general Rodrigo Janot traveled to Switzerland
in March for a meeting with his Swiss counterpart and the two
parties agreed to cooperate "in order to clear up this corruption
scandal and bring the perpetrators to justice."
Four former Petrobras executives have been arrested, and roughly
50 current and former Brazilian politicians are under investigation
for taking part in the scheme.
Some have admitted wrongdoing in exchange for lesser punishment,
prosecutors say, while others have denied involvement and await
trial.
This week, three former executives from another one of Brazil's
largest construction conglomerates, Camargo Corrê a SA, were
sentenced for money laundering and other charges for their roles in
the scandal. Camargo Corrê a said it has offered to collaborate
with authorities and is improving its corporate governance and
control systems.
Write to Will Connors at william.connors@wsj.com
Access Investor Kit for Petróleo Brasileiro SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=BRPETRACNOR9
Access Investor Kit for Petróleo Brasileiro SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=BRPETRACNPR6
Access Investor Kit for Dominion Resources, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US25746U1097
Access Investor Kit for Petróleo Brasileiro SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US71654V4086
Subscribe to WSJ: http://online.wsj.com?mod=djnwires