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| Oil Scandal Erupts Again as Brazilians Near Election | |
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| SANTIAGO, Chile — As Brazilians prepare to vote in a national election next month, a scandal involving the state-controlled oil giant Petrobras flared up again this weekend over testimony that implicated dozens of top figures in President Dilma Rousseff’s governing coalition in a vast kickback scheme. | SANTIAGO, Chile — As Brazilians prepare to vote in a national election next month, a scandal involving the state-controlled oil giant Petrobras flared up again this weekend over testimony that implicated dozens of top figures in President Dilma Rousseff’s governing coalition in a vast kickback scheme. |
| Details of the scheme were revealed in confidential testimony by Paulo Roberto Costa, a jailed former executive who oversaw refining operations at Petrobras until 2012. The testimony was obtained by Veja, a Brazilian magazine. The accusations target Ms. Rousseff’s energy minister, Edison Lobão, and the leaders of both houses of Congress, Henrique Eduardo Alves and Renan Calheiros. | Details of the scheme were revealed in confidential testimony by Paulo Roberto Costa, a jailed former executive who oversaw refining operations at Petrobras until 2012. The testimony was obtained by Veja, a Brazilian magazine. The accusations target Ms. Rousseff’s energy minister, Edison Lobão, and the leaders of both houses of Congress, Henrique Eduardo Alves and Renan Calheiros. |
| The revelations complicate a tough re-election bid by Ms. Rousseff, who has seen her lead in the polls vanish amid the surging candidacy of Marina Silva, an environmental leader whose campaign has blasted Ms. Rousseff over corruption at Petrobras and called on Brazil to shift toward a greater reliance on renewable energy sources. The election is scheduled for Oct. 5. | The revelations complicate a tough re-election bid by Ms. Rousseff, who has seen her lead in the polls vanish amid the surging candidacy of Marina Silva, an environmental leader whose campaign has blasted Ms. Rousseff over corruption at Petrobras and called on Brazil to shift toward a greater reliance on renewable energy sources. The election is scheduled for Oct. 5. |
| “Petrobras was already a minefield for Dilma’s image as a manager,” said Eliane Cantanhêde, a columnist at the newspaper Folha de S. Paulo, emphasizing that the report raised further doubts about the ethics of the governing Workers Party after the convictions of top figures in the party for their roles in a separate scandal over a sprawling vote-buying scheme. | “Petrobras was already a minefield for Dilma’s image as a manager,” said Eliane Cantanhêde, a columnist at the newspaper Folha de S. Paulo, emphasizing that the report raised further doubts about the ethics of the governing Workers Party after the convictions of top figures in the party for their roles in a separate scandal over a sprawling vote-buying scheme. |
| Ms. Rousseff addressed the revelations on Saturday at a campaign stop in São Paulo, saying that she was awaiting official information on the matter in order to take “all of the appropriate measures.” She added that it was too early to act on the “basis of speculation.” No charges have been filed against any of the political figures mentioned by Mr. Costa, the former Petrobras executive, and those he named rushed to say that they were innocent. | Ms. Rousseff addressed the revelations on Saturday at a campaign stop in São Paulo, saying that she was awaiting official information on the matter in order to take “all of the appropriate measures.” She added that it was too early to act on the “basis of speculation.” No charges have been filed against any of the political figures mentioned by Mr. Costa, the former Petrobras executive, and those he named rushed to say that they were innocent. |
| Mr. Costa was arrested in March after investigators said they had discovered a money-laundering operation that he had helped oversee as one of the most powerful executives at Petrobras from 2004 to 2012. Brazilian prosecutors said they discovered that Mr. Costa had kept about $23 million in Swiss bank accounts after profiting from the scheme. | Mr. Costa was arrested in March after investigators said they had discovered a money-laundering operation that he had helped oversee as one of the most powerful executives at Petrobras from 2004 to 2012. Brazilian prosecutors said they discovered that Mr. Costa had kept about $23 million in Swiss bank accounts after profiting from the scheme. |
| In a plea deal, he recently agreed to provide more details about the operation, which he said had involved the billing of contracts for oil projects, according to the Veja report. Political figures — including three governors, the energy minister and more than 30 legislators — then benefited by receiving 3 percent of the value of the contracts, the report said, citing his testimony. | In a plea deal, he recently agreed to provide more details about the operation, which he said had involved the billing of contracts for oil projects, according to the Veja report. Political figures — including three governors, the energy minister and more than 30 legislators — then benefited by receiving 3 percent of the value of the contracts, the report said, citing his testimony. |
| Mr. Costa’s testimony could also complicate the presidential campaign of Ms. Silva because Mr. Costa tied her former running mate, Eduardo Campos, to the scheme. Mr. Campos, the former governor of Pernambuco State, died in a plane crash in August, jolting Brazil’s political establishment and opening the way for Ms. Silva to take his place as the party’s presidential candidate. | Mr. Costa’s testimony could also complicate the presidential campaign of Ms. Silva because Mr. Costa tied her former running mate, Eduardo Campos, to the scheme. Mr. Campos, the former governor of Pernambuco State, died in a plane crash in August, jolting Brazil’s political establishment and opening the way for Ms. Silva to take his place as the party’s presidential candidate. |
| Ms. Silva told reporters over the weekend that her campaign would respond to the claims by “talking to people and doing everything with a great deal of calm, because we’re democrats and we believe in democracy.” | Ms. Silva told reporters over the weekend that her campaign would respond to the claims by “talking to people and doing everything with a great deal of calm, because we’re democrats and we believe in democracy.” |