Brazil's AG clears Petrobras board in 2006 refinery deal, in win for Rousseff

|About: Petrobras - Petroleo Brasil... (PBR)|By:, SA News Editor

Brazil's attorney general clears the Petrobras (NYSE:PBR) board of wrongdoing in the controversial 2006 purchase of a Texas refinery, handing a legal victory to Pres. Rousseff, who was chairwoman of the company at the time.

The AG's office backs Rousseff's claim that the board received only a "technically and legal flawed" executive summary of the deal, in which PBR paid $1.2B from a commodities trading house which had purchased the refinery a year earlier for only $42.5M.

However, Brazil's federal auditing body says former members of PBR's executive board, which did not include Rousseff, must repay $792M or give a valid explanation for the purchase price of the refinery.