Comptroller General Jorge Hage, the man in charge of fighting corruption in the Brazilian government, announced his resignation amid a widening graft scandal centered on state-run oil company Petrobras. Hage said he sent President Dilma Rousseff his resignation letter a few weeks ago, after she won re-election for a second term in office.
“I’ve done my duty. I’ve made my contribution. It’s time to rest,” the 76-year-old lawyer said at a news conference marking international Anti-Corruption Day, which is celebrated Tuesday 09 December.
Earlier this year, Hage complained that his office’s budget had been cut to the point where it was having trouble paying its telephone and electricity bills, let alone covering the expenses of tracking the misuse of government funds.
His resignation comes as prosecutors prepare to indict 11 executives from six of Brazil’s top engineering and construction firms for allegedly paying billions of dollars in bribes for contracts with Petrobras.
The comptroller-general last week opened a case against eight construction firms that have contracts with the state oil company. The process against Camargo Correa, Engevix, Galvão Engenharia, IESA, Mendes Junior, Grupo OAS, Queiroz Galvão and UTC-Constran could prevent them from signing new contracts and lead to fines and other penalties.
Hage also said that his office had formally asked presiding judge Sérgio Moro for the detail of contracts assigned by other public companies. Moro has said that there’s evidence that the kickbacks’ scheme “extended beyond Petrobras.”
Under Brazilian law, companies found guilty of bribery can be barred from doing business with the government for two years.
Yet the construction companies under investigation are so big, with combined revenues of 150 billion Reais (58bn dollaras), that broad suspensions could badly damage the economy. Some of them have been assigned large infrastructure projects in preparation for the Rio 2016 Olympics.
The companies are also major suppliers to Petrobras, which would struggle to find alternatives to execute projects.
Top Comments
Disclaimer & comment rulesVery clever of the government that the construction companies are so big that the government can't do without them. How about going out to International tender? No won't work either as the graft has to be internal so it can be contained by the government. My bet is that in the USA Petrobras is in deep shit regarding inflated asset values etc and money laundering. Is there not ONE SA country that the government and their politicians are taking their electorate to the cleaners.
Dec 09th, 2014 - 09:10 am 0Sounds like he's just getting out before the house collapses.
Dec 09th, 2014 - 05:10 pm 0This guy is tired and needs a rest.
Dec 09th, 2014 - 05:41 pm 0A rest from hiding all the crap under the carpet by the look of what's happening.
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