Mendes Júnior Executive Admits Paying US$3.1 Million Bribe

11/19/2014 - 08h42

In a statement to the Federal Police, the executive vice-president of the construction firm Mendes Júnior, Sérgio Cunha Mendes, has admitted paying R$8 million (US $3.1 million) to the black market currency dealer Alberto Youssef and the ex-director of supply at Petrobras Paulo Roberto Costa.

The aim was to avoid reprisals against the firm in its contracts with Petrobras.

The information was released by Marcelo Leonardo, a lawyer at Mendes Júnior, who was present at Cunha Mendes' testimony in Curitiba, where the executive remains in custody.

Leonardo says the money was deposited in accounts in companies held by Youssef between July and September of 2011.

"He said that he knew Paulo Roberto Costa and Alberto Youssef, and that they coerced him into making a payment by threatening that past and future contracts the company held would not proceed. Because of this extortion, they made a one-off payment to Youssef's companies," the lawyer said.

Leonardo said that his client was first introduced to Youssef by the congressman José Janene (of the Paraná branch of the Progressive Party), and that Youssef "demanded the money for the Petrobras director."

He also said that the extortion related to a contract Mendes Júnior held with Petrobras for work at the Presidente Vargas refinery (Repar) in Araucária, in the Curitiba metropolitan area.

While Cunha Mendes is the first executive to specify values allegedly paid as bribes, the director of oil and gas at the construction firm Galvão Engenharia, Erton Medeiros Fonseca, gave a similar statement on Monday (17).

He claimed that his company resolved to pay off Youssef after having been threatened with reprisals relating to existing contracts with Petrobras.

A similar decision was allegedly taken by executives from the construction firm UTC.

Their lawyer, Alberto Toron, said that he has instructed his clients to respond to all the questions they are asked during interrogations. "They won't remain silent," he said.

Questioned by Folha, the national president of the Progressive Party, Piauí senator Ciro Nogueira, said that both the previous and current party executive knew nothing about any payments made with Janene's participation.

He also said that the financing of the 2010 and 2014 election campaigns was legal.

Youssef's lawyer, Antônio Figueiredo Basto, would not comment on the alleged bribes, while João Mestieri, representing Paulo Roberto Costa, denies that his client was responsible for extorting Mendes Júnior.

"It's pure fantasy," he said.

Translated by TOM GATEHOUSE

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	Adi Leite/Valor
	Executive vice-president of Mendes Júnior, Sérgio Cunha Mendes, has admitted paying R$8 million (US$3.1) to Alberto Youssef