Investigations Refrain Petrobras from Publishing its Quarterly Balance Sheet

11/14/2014 - 08h37

Brazil's state-run oil company Petrobras informed the market last Thursday (13) that it will postpone the release of its third quarter financial statements, claiming it needs to deepen the investigation into allegations of corruption and maybe adjust the document.

According to Folha's investigation, the PwC (PricewaterhouseCoopers) didn't sign the balance sheet as required per CVM (Brazilian Securities and Exchange Commission) instructions. The PwC audits the company since 2012.

The company now intends to present the documents on December 12, even without the PwC's permission. As the deadline was this Friday (14), Petrobras will be subject to a fine of US$ 193 (R$ 500) per day for the delay.

The announcement justified it by saying "the company goes through a unique moment in its history" due to the Operação Lava Jato, which investigates a corruption scheme involving the corporation.

In October, PwC met Petrobras audit committee, which delivered a letter demanding the state-run company deepened the investigations into allegations of corruption and expressed particular concern over Transpetro former President Sérgio Machado.

In the document, the auditors stated that if their requirements were not met, they would not sign the company's financial statements.

Companies registered with CVM are required to have their balance sheets audited. The audit verifies if the information presented meets accounting standards.

To handle PwC's demands, Petrobras announced the hiring of two law firms to assist the investigations conducted by the internal commission. The firms are based in the United States and Brazil.

Both are FCPA (Foreign Corrupt Practices Act) experts - the American law that fights corruption outside U.S.. The Brazilian state-run company is subject to FCPA because its shares are traded in the country.

Petrobras has also agreed in principle to replace Machado at Transpetro in 31 days.

The American law also requires the auditors to act in case of irregularities.

The audit committee meeting scheduled to analyse the financial statements was arranged for this Friday (14) at 10 am, in São Paulo.

The PwC said it would not comment on the grounds of the contract's confidentiality clause.

Translated by JULIANA CALDERARI

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