Brazil's Petrobras has written off close to $17 billion due to losses from graft and overvalued assets.

Brazil’s Petrobras writes off $17 billion

BRASíLIA, April 23, 2015 – Brazil’s national oil company Petrobras has written off close to $17 billion due to losses from graft and overvalued assets, following a corruption scandal that has seen the country plunge into political and economic tumult.

The disclosure has come as a part of the first audited financial statements released by the majority state-owned company in more than eight months.

Federal prosecutors have been investigating allegations of suppliers overcharging Petrobras for major projects since 2014, directing a portion of illicit profits to former executives and politicians in the form of unlawful political donations and bribes.

Aldemir Bendine, who became Petrobras’ CEO in February 2015, said in a news conference that further revisions to the corruption-related write-downs were possible should prosecutors expose additional misconduct. However, he added that an outside auditor had approved Petrobras’ earnings “without any reservations.”

Click here for more news and features from Brazil

Read our latest insights on: