Marcelo Odebrecht indicted, Braskem to name new chairman

São Paulo, Brazil – Brazilian petrochemicals and polymers maker Braskem SA will hold an extraordinary general meeting on 4 Aug to appoint a new chairman for its board of directors.

 The move follows the 20 July indictment of current chairman Marcelo Odebrecht for alleged involvement in a corruption scheme in state-run oil company Petroleo Brasileiro SA, or Petrobras.

 Braskem confirmed to Plastics News that Newton de Souza, who is serving as interim CEO in construction company Odebrecht SA, will become chairman of Braskem’s board.

 He is also on the board Odebrecht SA and has previously held seats on the boards of all Odebrecht companies, including Braskem.

Marcelo Odebrecht was indicted, along with seven other people, by the Brazilian Federal Police on July 20 for involvement in fraud and corruption in some Petrobras bidding processes, according to local media. He has been in prison since 19 June.

Odebrecht SA said in a statement that the indictment was already expected, “although it has no solid foundation.” The company said its lawyers will wait for the opportunity to fully exercise the right of defence.