Brazil's Petrobras creates compliance division to fight corruption

Brazil's state-owned oil and gas giant Petrobras announced Tuesday that it would set up a new governance, risk and compliance directorship to deal with its involvement in a corruption scheme.

"The mission of the new director is to ensure compliance with laws and regulations and mitigate risks in the company's activities, including fraud and corruption," it said, adding the administration board has approved the creation of the directorship.

Petrobras is searching for potential candidates for the position with a term of three years. It will establish a list from which the board will choose a suitable candidate.

The move came in response to a huge scandal involving Petrobras' contracts with the private sector.

According to investigations carried out by the Brazilian Federal Police, some Petrobras directors accepted bribes from construction companies interested in contracts with the oil giant.

The corruption scheme is said to have lasted for more than a decade, spanning through several administrations. Former Petrobras directors as well as heads and employees of nine large construction companies in Brazil have been arrested.

Petrobras has also started its own investigations and suspended from key positions employees suspected to be involved in the scheme.