Brazilian steelmaker Companhia Siderurgica Nacional (CSN), which was mentioned earlier this month by an Odebrecht executive who is being investigated for corruption, was once again cited for allegedly having donated money to a Brazilian politician.
Donations to politicians by Brazilian companies are not illegal, but they need to be reported to the Brazilian Electoral Court (TSE) and follow certain limits. Donations that are not legally reported to the TSE or that go through other non-official, unaudited, secondary company accounts may be considered illegal.
Marcelo Bahia Odebrecht, the former CEO of Brazilian conglomerate Odebrecht, said CSN’s CEO, Benjamin Steinbruch, gave about BRL 14 million to Brazil’s former finance minister Antonio Palocci and BRL 2.5 million to a candidate running for governor of Sao Paulo, Paulo Skaf. Odebrecht reportedly made the donations in favor of CSN’s CEO.
The Odebrecht executive said CSN “reimbursed” his company for the unaudited money. The “reimbursed” money was paid by CSN during the construction of a mill by Odebrecht.