Brazil's Petrobras to create department to fight corruption amid widening scandal

SAO PAULO – The president of Brazil's Petrobras has announced the creation of a compliance department to deal with the unfurling corruption scandal that has shaken the state-owned oil giant.

Graca Foster says the scandal has underscored the need for such an internal body, which she pledged would be operating as soon as possible.

Foster made the announcement Monday in a conference call with investors after about two dozen people were detained last week in connection with the corruption scheme.

Authorities allege top Petrobras officials operated a kickback scheme on contracts involving several billion dollars, with the money later going back to the governing Workers Party and other top parties for political campaigns.