Image courtesy of Engevix.

Engineering firm Engevix Engenharia is reportedly negotiating a leniency deal with Brazilian officials for its involvement in alleged corruption at state owned Petrobras.

The Brazilian company told Reuters it signed a memorandum of understanding with Brazil’s comptroller general last Tuesday as part of an effort to craft a leniency deal.

Engevix added that it will sell assets to pay off $462 million in debt as the fallout from the Petrobras scandal hits its bottom line, Reuters said.

The deal follows a similar memorandum between the comptroller general and Netherlands-based SBM Offshore that established a framework for that company to disclose information relevant to the probe.

The comptroller general is investigating 29 building and engineering firms for suspected price inflation and kickback schemes tied to Petrobras contracts.

Former Petrobras officials have alleged employees collaborated with engineering and construction firms to inflate the price of contracts and skim off the excess funds.

Brazilian prosecutors have also filed five federal lawsuits against six construction companies for $1.55 billion in damages tied to alleged corruption.

The ongoing corruption probe into Petrobras has already landed three former executives in jail and forced former CEO Maria das Graças Foster to step down earlier this year.

Before resigning Foster said the company could face write downs of up to $31 billion for alleged bribery and kickback schemes tied to company contracts, a figure recently appointed CEO Aldemir Bendine disputes.

Last month Switzerland’s attorney general office froze about $400 million of assets allegedly tied to corruption at Petrobras.

Former Petrobras executive Pedro Barusco has admitted to using Swiss bank accounts to launder a portion of an estimated $100 million in bribes he received while at the company.

Brazil’s central bank froze about $18.6 billion of assets in November belonging to suspected participants in corruption schemes at Petrobras.


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