The Oil Corruption Scandal in Brazil, 2016 Essay Example

party, the Workers Party. Meanwhile, President Rousseff has maintained a passive stance towards the ongoing investigation. As of the beginning of 2016, threats have been directed towards her because of the perceived weakness of Brazil's power structures, with her being in control of the State (Oilandgaspeople.com N.p). President Rousseff is likely concerned as she was the chairperson of the board of directors during that period, making her a central figure in the corruption scandal. Consequently, those implicated may also bring her down.

Brazilian media reports in February and March suggested that the former Senate leader of the Workers Party pledged to expose both Mr. da Silva and Ms. Rousseff as implicated in a plea deal (Cunningham N.p). He was detained in November 2015 for attempting to obstruct the investigation. Nevertheless, despite initiating an inquiry into campaign financing, the Senate's efforts to impeach the president appear to be losing momentum, potentially leading to the judiciary removing her from office.

There is increasing worry among Brazilians as the investigators approach, fearing that Ms. Rousseff might attempt to obstruct their work. The recent resignation of Minister of Justice, Jose Eduardo Cardozo, has further heightened this concern. Throughout the investigation, Mr. Cardozo has faced constant pressure from the investigators.

Cardozo's political allies claim that he does not have control over the Federal police, even though he is entitled to it, which has led to the police becoming autonomous. His resignation has raised concerns about the integrity of the police and the fate of the force's chief commander (Oilandgaspeople.com N.p). As a result of the political standstill, the president's chances of remaining in power until her term ends in 2018 have been reduced

to only 35% of the majority favor (Barbassa N.p). This decrease in support is a result of the damaged credibility of her government, both among the Brazilian people and internationally.

The economic crisis has hindered the government's efforts to address the troubled economy under Rousseff's leadership, leading to insufficient support for implementing necessary austerity measures. Finance minister Joaquim Levy resigned after his attempts to reduce spending and raise taxes were rejected by both Rousseff and Congress. As a result, Brazil experienced a 4% decline in its economy in 2015, with little hope for future success. This corruption scandal has also resulted in Brazil being downgraded due to debt and political instability. It is particularly significant considering that corruption has been ingrained in Brazil's history.

The text highlights the inspiring case of President da Silva and the economic degradation caused by corruption. President da Silva implemented frameworks to establish anti-corruption laws, focusing on strengthening civil societies and improving the judiciary. These legislations were signed into law by Ms. Rousseff. However, the rules allowed suspects and involved companies to act as informatics, resulting in lighter sentences and the erosion of the judicial system.

The investigations have become independent, and the judiciary is no longer afraid to convict powerful politicians. The legislations have been seen as tools for democratic maturity in the country instead of being accused of coup-mongering. Despite potentially going against her presidency, Ms. Rousseff should maintain the nobility and independence of the judiciary and law enforcement. This will help achieve equality under the law. The steps leading to the identification and proceedings of the oil crisis saga can be summarized.

The Petrobras oil company was partially privatized in the

1990s under the government of Luiz Inacio Lula, President da Silva, but state control was later restored up to 2010 (Barbassa N.p). In 2007, Petrobras became the sole operator after discovering pre-salt oilfields, located below a two to three-kilometer-thick salt layer under the ocean. This discovery made Petrobras the world's largest corporate program with the highest capital expenditure. As the company prospered, the Workers Party and its associates appointed candidates of their choice to key executive positions. Former director Paulo Roberto Costa allegedly diverted funds amounting to 3% of contracts to the Workers Party (Cunningham N.p).

The directors worked together with Brazilian construction companies in fraudulent deals. They gathered funds in foreign banks and used them for extravagant art purchases. These activities also involved black market transactions, particularly those organized by Alberto Youssef, who was found guilty of money laundering. As a result, investigators suspect that the money was used to finance the 'project of power' which allowed the party to maintain authority and fund their general election campaign (Epa.gov N.p).

The police began investigating the case known as Lava Jato or Car Wash due to public demands and ongoing riots. The investigation started by tracking black market dealers, also known as doleiros, at a petrol station called Posto da Torre in Brasilia. This station was known for exchanging money (Cunningham N.p). The investigators were led to Roberto Costa by the dealers, which revealed the type of corruption at Petrobras. So far, 179 individuals have been charged, with 93 of them convicted and a combined sentence of nearly 1000 years. However, a substantial amount of the bribes paid, around R$6.2bn out of R$29bn to R$42bn, has not

yet been recovered (Barbassa N.p).

Several prominent individuals, such as the former treasurer Joao Vaccari Neto and coalition partners, have been implicated in the scandal. However, some judges and lawyers involved in the investigation have expressed determination to bring it to a close. Lava Jato, for instance, is believed to be a force that empowers Brazilian institutions and is not easily deterred. Sergio Moro, a Federal judge in Curitiba, is a notable figure known for his fearless rulings. He famously incarcerated tycoon Marcelo Odebrech, who was only 19 years old at the time (Cunningham N.p).

He argues that the Brazilian culture must put an end to impunity.

Conclusion

Energy conservation is a crucial measure that every government should prioritize. In addition to its impact on the economy, energy conservation also plays a vital role in maintaining health standards by regulating the environment. However, certain government officials and company executives participate in bribery and misappropriation of funds intended for development. In the case of Petrobras Oil Company, both former president Luiz Inacio Lula da Silva and current president Dilma Rousseff have been implicated in this scandal.

The scandal in the football governing body, among others, has raised concerns about Brazil's economy. It is the responsibility of both the government and the people to work together to prevent future occurrences of such crimes.

Work cited

• Financial Times: "What Is The Petrobras Scandal That Is Engulfing Brazil? - FT.Com". Financial Times. N.p., 2016. Web. 25 Apr. 2016.
• Barbassa, Juliana. "Why Brazil'S Corruption Scandal; A Sign Of Progress". Nytimes.com.

N.p., 2016. Web. 25 Apr. 2016.

Industry In Serious Doubt | Oilprice.Com". OilPrice.com.

N.p., 2016. Web. 25 Apr. 2016.

Web. 25 Apr. 2016.

Web. 25 Apr. 2016.