Rio de Janeiro prosecutors file new case against oil company Petrobras

Associated Press

The Rio de Janeiro public prosecutors' office has filed legal action against Brazil's scandal-mired oil company, Petrobras, as well as top builder Andrade Gutierrez.

The civil case centers around allegations of overbilling on four Petrobras contracts with the builder from 2005-2010.

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The prosecutor has requested that the bank account of former Petrobras president Jose Sergio Gabrielli and seven others be frozen.

Gabrielli was president from 2005-2012. He is the highest-ranking Petrobras official to be implicated in Petrobras' widening corruption scandal.

The Rio public prosecutor's allegations Tuesday open a new chapter in the scandal, which has focused on a kickback scheme on contracts worth upward of $4 billion. Investigators allege money was eventually fed back to the governing Workers' Party and other top parties for political campaigns.