embarked on a series oftransactions that are now the subject of corruption investigations. Theseinclude accusations that it overpaid for a refinery in Pasadena in the US,paying a sum 28 times greater than the original owner, Belgian company Astra,paid for it. Brazils TCU or federal accounts watchdog ordered the formerboard of Petrobras to return $792.3m to the company that it calculated as thelosses from the $1.18bn Pasadena transaction.But by far the biggest concern is the Abreu e Lima refinery. Accordingto the prosecutors, the Lavo Jato investigation began as aprobe into suspected money laundering by the late Jose Mohamed Janene, a PPpolitician. In the process, police discovered fraudulent transactions committedbetween 2009 and 2013, allegedly by Mr Youssef and Petrobrass Mr Costa.Police suspect Mr Youssef to be the biggest doleiro innational history, according to an investigation dossier, using the Portugueseterm for black market money dealer. He was convicted for financial crimes in2004.Mr Costa was appointed Petrobras director of fuel supply in 2004 andbecame the executive responsible for refineries in 2008. Prosecution documentsallege Mr Youssef, Mr Costa and conspirators hatched myriad shell companyschemes to skim money from Petrobras and then wash it by sending it offshore.We have indications that Paulo Roberto [Mr Costa] transferred more than$400m offshore through foreign exchange contracts, says public prosecutorCarlos Fernando Santos Lima.The prosecution cites, as one example, findings by TCU that contractsawarded to one builder, identified as Consorcio Nacional Camargo Correa, wereinflated in value by as much as R$446m. This company had in turn contracted twoothers, Sanko Sider and Sanko Servicos, to supply materials and services,paying them R$113m over four years.These two, in turn, paid R$26m to an alleged shell company, MOConsultoria, controlled by Mr Youssef, and other undisclosed sums to another ofhis alleged shells, GFD. This money then allegedly made its way offshore.CNCC told the FT in response to the allegations that it won itscontracts through legitimate public tenders. It said it was co-operating withinvestigators. A spokesman for the Sanko companies said all transactions werelegitimate and made through the conventional banking system. He added that thecompanies were assisting the investigation.Prosecutors allege evidence seized from Mr Costa indicated he negotiatedwith Petrobrass contractors to make political donations. They point to adocument in which he wrote the names of six big Petrobras contractors thatdonated a total of R$35.3m to parties in the governing coalition during the2010 election. Prosecutors allege the document could be treated as aspreadsheet for possible campaign donations, in which Mr Costa acted as anintermediary for these contributions with companies that had contracts withPetrobras.Mr Costas lawyers said the prosecutors accusations against him arebaseless assumptions. They also said there was no evidence of inflating ofcontracts. The criteria adopted by the prosecution are contestable and thiswill become clear as the case progresses. Mr Youseff also denies theallegations, his lawyers said.PT politicians also said it was too early to draw conclusions aboutpolitical donations. They said Petrobrass problem is its commercialindependence and ability to award contracts without the open tenders that wouldbe required of a public ministry.Congressman Marco Maia, who is leading a lower house congressionalinquiry, said lawmakers would review Petrobrass procurement processes to makethem