MercoPress. South Atlantic News Agency

Brazilian executives from leading companies formally charged for the Petrobras corruption scandal

“These people stole the pride of Brazilians,” Prosecutor-General Rodrigo Janot said at a news conference in the southern city of Curitiba

Brazilian prosecutors formally charged executives from six of the country's largest engineering firms with forming a cartel to funnel kickbacks from state-run oil firm Petrobras to the ruling political party and its allies.

 They were also indicted on charges of corruption, money laundering and organized crime in a landmark case that has shaken President Dilma Rousseff's government.

The companies with indicted executives are OAS, Camargo Correa, UTC Engenharia, Galvao Engenharia, Mendes Junior and Engevix.

The corruption scandal, in which billions of dollars were allegedly paid by the companies in bribes to win Petrobras contracts, threatens to paralyze infrastructure projects vital for reviving Brazil's stagnant economy.

The case is expected to implicate dozens of politicians and weaken Rousseff's already fragile governing coalition as she begins a second term on January 1.

Prosecutors said they are seeking the return of about 1 billion Reais from the companies involved in the bribery scheme.

“We are in a war against impunity and corruption,” prosecutor Deltan Dallagnol said at a news conference. “The victim of this scheme was Petrobras.”

“These people stole the pride of Brazilians,” Prosecutor-General Rodrigo Janot said at a news conference in the southern city of Curitiba, where a top informant in the case is being held. “We're far from being at the end” of the investigation.

Thirty five people were indicted, of which 22 are linked to the engineering companies.

The executives, some of whom have been held for nearly a month at the federal prison in Curitiba where the scheme was discovered, could face sentences of more than 20 years in jail.

Many of the allegations center on what police have heard from Alberto Youssef, a convicted black-market money dealer and among those charged Thursday. He has said that he laundered hundreds of millions in the scheme and that the governing party benefited from it.

Youssef, who is talking to police in exchange for less jail time, claims recently re-elected President Dilma Rousseff and former President Lula da Silva knew about the kickbacks. He has offered no proof, and both leaders deny the allegation.

Petrobras, Brazil's biggest company, is in charge of tapping offshore oil fields and creating wealth that leaders hope will propel the country to developed world status. But the debt-plagued firm hasn't met development goals, and the riches remain buried deep under the sea floor.

Polls say Brazilians widely believe their government is corrupt. This case has only added to the suspicions, especially when it comes to big infrastructure works involving public funds.

Anger over corruption added gas to last year's big and spontaneous anti-government protests that rocked city streets across Brazil. Citizens vented frustration about the woeful state of public services in the country, and many linked the siphoning off of their tax dollars via corruption to the poor quality of hospitals, schools, transportation and public security.

Recent opinion polls show Brazilians are skeptical that at the end of the day anybody will end in jail, because “the big cats” always manage to get “off the hook”.