Brazil’s federal police (PF) has indicted several Gerdau executives, including the company’s CEO, Andre Gerdau Johannpeter, during a corruption probe known as the Zelotes Operation, the police said on Monday.
The operation has indicted 19 people for both passive and active corruption, money laundering and influence peddling, also including a company administration council member, Expedito Luz, and 16 company directors. José Ricardo da Silva, a former counselor at Brazil’s board of tax appeals, Carf, was indicted as well.
Since the start of the probe in March last year, Gerdau has denied any wrongdoing. In February this year police raided several offices of Brazil’s largest steelmaker and issued an arrest warrant for Johannpeter.
As a result of the probe, Gerdau then postponed its Q4 conference call to March 15, 2016.
Media reports on Monday said Vale avoided BRL 1.5 billion in taxes by using lobbyists to pay bribes to the Carf members.