Petrobras 3

Brazil is facing the worst economy in 25 years. The Zika virus is feeding fears, particularly for expectant mothers. And while the Rio Olympics are presenting an opportunity to shine the international spotlight on Brazil, the underclass are generally feeling that the only people who will benefit from the Games will be the fortunate rich and powerful.

And then, there is Petrobras, a government entity embroiled in a bid rigging scandal between officials in the state-owned energy company and construction companies that wish to win Petrobras projects. A secret cartel of construction companies work with Petrobras officials to select the construction company, purposely agree to exorbitant payments, after which the construction companies kick back payments back to the collaborating Petrobras officials, who use that money to fund friendly politicians, which is helpful for a state-owned organization. It is estimated that the scandal has resulted in over USD5 billion changing hands in various illegal transactions. That’s astounding.

Petrobras bidness 2

I have not done this explanation justice, which is why I want to point you to this very clear and effective explanation of the Petrobras Scandal, and the historical and political context, by Zach Beauchamp.

In Brazil right now, if anything can go wrong, it seems it will go wrong – just on the verge of commencing Brazil’s greatest party of them all, the Olympic Summer Games in Rio.

But one thing we can say about the Petrobras Scandal, something that Beauchamp points out at the end of his article. This scandal, which has been tabloid fodder for months in

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