Brazilian steelmaker Gerdau has denied any participation on a tax evasion schemed known as the Zelotes operation, following the accusation of its CEO, Andre Gerdau, and other company’s directors by Brazil’s federal police for active corruption, money laundering and influence peddling.
According to a company’s filing at the nation’s securities exchange, CVM, neither Gerdau as a whole nor its indicted executives ever promised, offered or given any advantage to officials of the board of tax appeals, Carf, so they could illegally judge those processes in favor of Gerdau.
A media report said earlier this week other company’s directors were involved, but Gerdau clarified four other people besides the CEO were indicted by the federal police.
Gerdau said it just received the final report with the details of the investigation on Thursday, arguing that it couldn’t have given any advantage to those Carf officials as the process are still going on.
The steelmaker said it often hires external offices to help it technically with Carf related issues. Contracts with such consultancy offices have a clause in which there should be “absolute respect with the law, otherwise, contracts should be immediately suspended.”