Former Petrobras CEO Jose Sergio Gabrielli. Image courtesy Roda Viva/Youtube.

Brazilian prosecutors said Tuesday they are planning to indict former Petrobras CEO Jose Sergio Gabrielli in connection with an alleged $11 million fraud tied to a Petrobras construction contract.

Prosecutors are also seeking to indict construction and engineering company Andrade Guitierrez for allegedly conspiring with Petrobras employees to overcharge for work on an expansion to Petrobras’ Rio de Janeiro research park and data processing facility.

The cost overruns prosecutors have focused on for four projects are alleged to be about $11 million, prosecutors said.

Andrade Guitierrez said it has not been informed about possible indictments and that all work for Petrobras was carried out legally.

Gabrielli, who led Petrobras from July 2005 to January 2012, has not commented on the matter.

Prosecutors asked a Rio de Janeiro court to freeze assets belonging to several Petrobras executives, including Gabrielli, and grant law enforcement officials access to bank records, Reuters said.

Last week, 36 people were indicted for conspiring to inflate the costs of contracts tied to Petrobras and kick back left over funds to executives, politicians and political parties.

On Monday, Petrobras’ former head of international operations Nestor Cervero was charged along with a consultant for Japan-based contractor Toyo Setal for an alleged bribery and kickback scheme.


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