Petrobras

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In 2014, the “Clean Company Act 2014” was enacted. According to the Act, companies are responsible for the corrupt practices of their employees and can be held liable without a finding of fault. Bid rigging and fraud are prohibited in public procurement, as well as bribery of Brazilian public officials. If found guilty of corruption the companies can be suspended, dissolved or fined.

Economic consequences
In 2013 it was estimated, by using statistics provided by the Federation of Industries of Sao Paulo State, that between $32 – 53 billions could be accounted as corruption money. This means about 2% of the country’s total GDP
• Total costs of corruption in Brasil -> Money could have been used to…

o Multiply amount spent on education and public health o Lift 10 million Brazilians out …show more content…

• As they were a large state firm there was low risk of bankruptcy and they could invest heavily in technological innovation and development
• Had monopoly on oil search- and production in Brazil from 1954-1997
• Oil central to Brazil growth strategy – Petrobras leading role o At one point the 6th -largest company in world by market capitalization and accounted for 10% of Brazils total GDP, with a value of more than $200 billion (2008)
• In 2010 Petrobras raised $70 billion in the world's largest-ever share sale. Today, Petrobras is worth $56 billion.

Economy ($ billions)

• Non-Reccuring Items skyrocketed and played a big role in the huge yearly loss of $7.5 billion.
Examples of unusual or infrequent items:
• Gains (or losses) as a result of the disposition of a company's business segment including: o Plant shutdown costs o Lease-breaking fees o Employee-separation

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