Brazilian Prosecutors Seek Compensation in Petrobras Probe

RIO DE JANEIRO--Federal prosecutors in Brazil said Friday they are seeking roughly $1.5 billion in compensation from six companies accused of paying bribes to state-run oil firm Petroleo Brasileiro SA, and are looking to ban those companies from government contracts, the latest step in a corruption scandal that has rattled Brazil's biggest construction firms.

Prosecutors said the total, which includes compensation to the federal treasury and fines for alleged "improper conduct," should be paid by construction companies Camargo Corrêa, Sanko, Mendes Júnior, OAS SA, Galvão Engenharia and Engevix.

Other companies that prosecutors allege took part in the corruption, but weren't among those prosecutors are seeking repayment from, include Brazil's biggest construction firm Odebrecht SA, and Swedish firm Skanska AB.

Camargo Corrêa said it will respond to formal charges if and when they are presented. Sanko said it hadn't yet received official notification from authorities and declined to comment further. OAS "vehemently denies" the allegations, and said it will defend itself when officially notified by authorities. Galvão declined to comment. Engevix said it would take appropriate measures when notified of this by its lawyers.

The others didn't immediately respond to a request for comment.

Petrobras has said it was a victim of the scheme and was cooperating with authorities. Odebrecht has denied wrongdoing and said it was cooperating with the probe. Mendes Júnior has said it was cooperating with the investigation.

Prosecutors didn't specify what steps will be taken next to enforce the requested penalties.

The six companies are among 16 total that prosecutors allege paid hundreds of millions of dollars in bribes to Petrobras executives to win contracts, mainly between 2004 and 2012.

The investigation, nicknamed Operation Car Wash, has seen nearly 40 people--including two Petrobras executives--charged with crimes from money laundering to fraud. Prosecutors said Friday that the investigation is ongoing.

Several of the construction firms have been hit in recent months with credit-ratings downgrades, and OAS has missed a bond payment.

"The proposed actions embody the conviction that all should be punished equally in proportion to the gravity of their actions," prosecutor Deltan Dallagnol, the coordinator of the Operation Car Wash task force, said in a statement. "Companies commit corruption because the benefits are greater than the costs. We must reverse this formula."

Paul Kiernan contributed to this article.

Write to Will Connors at [e-mail]

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