One of Brazil's Richest Men Arrested in Petrobas Corruption Scandal

In a sign of just how seriously the government is taking a scandal involving the national oil company Petrobas, Brazil arrested one of the country's richest and most powerful figures.

Bloomberg reports that Marcelo Odebrecht was arrested as part of an operation that involved 220 federal officers in four of Brazil's states. Odebrecht is the heir and leader of a multinational corporation called Odebrecht SA.

The company's list of projects includes world cup stadiums, deep-sea ports, and Miami's airport. The company is also the single largest employer in the African nation of Angola. There are 500 companies and 15 divisions in Odebrecht SA.

Odebrecht was arrested as part of an investigation into the contracting and payment practices of Petrobas. Law enforcement believes that rampant corruption defined the corporation because it was approved by high ranking officials in the corporate bureaucracy.

The government is accusing Petrobas and its contractors of colluding to pay prices for goods and services that were far above their actual value.

This collusion involved bribes and the use of offshore bank accounts in countries like Panama, Switzerland, and Monaco. Prosecutors say they were able to make the arrests because they found concrete evidence of bribery payments and collusion. It is alleged that this went on for decades and involved bribes totalling hundreds of millions of dollars for contracts valued in the billions.

Adding to the scandal is the fact that Odebrecht SA regularly contributes to politicians and political parties all throughout Brazil. Odebrecht himself has publicly said the company has donated to city mayors, governors, and around 150 members of congress.

While Odebrecht has been arrested, there are still other key figures in the scandal who have yet to be arrested.