A corruption probe unfolding against Brazilian state-owned oil company Petrobras took an interesting turn today, when Brazilian federal police carried out a series of raids that resulted in the arrests of eighteen individuals believed to be involved in a widespread money-laundering scheme.

The raids, involving more than 300 Brazilian federal police, took place several construction companies that held contracts with Petrobras in the states of Parana, Sao Paulo, Rio de Janeiro, Minas Gerais, Pernambuco, as well as Brasilia, the capital of Brazil, according to BBC News.

Since March, Petrobras has been rocked by allegations made by Paulo Roberto Costa, former head of refining, that executives of the state-owned oil company engaged in a money-laundering and bribery scheme whereby billions of dollars were shaved off the value of contracts in the form of kickbacks paid back to Petrobras executives and politicians. BBC News reports that the scheme involved a cartel consisting mostly of major Brazilian construction companies.

The bribery allegations against Petrobras are also being investigated by the Department of Justice and the Securities and Exchange Commission for potential violations of the Foreign Corrupt Practices Act, according to the Financial Times.

Delayed Financial Results

In light of the accusations and investigations, Petrobas said, it is “undergoing a unique moment in its history,” and will need to delay the filing of its third quarter 2014 financial statements.

In October, Petrobras disclosed that it had hired Brazilian law firm Trench, Rossi e Watanabe Advogados and U.S. law firm Gibson, Dunn & Crutcher “to examine the nature, extent, and impact of the acts that may have been committed within the context of the allegations,” the company stated.

Consequently, the release of its financial statements are being delayed as a result of the time needed to gain greater understanding from the ongoing investigations by the independent law firms; to make any adjustments to the financial statements based on current accusations and investigations; and to evaluate the need for internal control improvements.

Petrobras said it expects to release its third quarter 2014 financial statements, without a review by its independent auditors, PwC, on Dec. 12 “in order to keep the market informed in recognition of the importance of transparency.”

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