On Friday, Petroleo Brasileiro Petrobras stated that company’s corporate services director, Dutra is going on a 90 days leave because of health problems.
Company’s corporate service sector is accountable for its construction and engineering relating contracts, lately which have proven to be damaging for Petrobras company image. The oil giant and service provider was blamed of raising the value of the contracts with a lobby of other firms in construction business, while using the extra money to bribe company’s ex-officials and politicians.
It is believed that this corruption has been done in the time span of 8 years during 2002 to 2008, the times when present Brazilian President was the chairperson of the company’s board. However, President Mr. Rousseff has deprived off any information about the corruption.
Another duty of the corporate service department is to perform tenders for other divisions in operation. Last year, the sector was also accountable for legal compliance and corporate governance. Earlier this January, the Rio de Janeiro-based company appointed Mr. Joao Adalberto Elek to run its compliance division, which is now in control of cooperate governance too.
Mr. Dutra aside from being a Chief Executive Officer of Petrobras SA during the years 2002 to 2005, he continued as a president of ruling party in Brazil. Furthermore, he was also an ex-Senator of Brazil.
The Rio de Janeiro-based company reported its 3rd quarter unaudited results for 2014 earlier in January. The oil giant and Oil Prices failed to include the asset write downs value and was under criticism by its investors and shareholders. After the extreme criticism former Chief Executive Officer Maria das Gracas and five of the other officials as well as CFO Almir Barbassa resigned from their respective positions. Though, Mr. Dutra and two of the other senior executives refused of having any idea about the scandal and did not resign.
During his 90 days off, Antonio Sergio Oliveira will take his position, who has been working for 38 years in the company. Mr. Dutra is not the first senior executive taking a leave. Before that, Mr. Sergio Machado, Petrobras head of Pipeline and shipping has taken 30 days leave. As reported by Reuters, Mr. Oliveira was accused of corruption and his leave has been extended as he failed to report back after a month.
Petrobras stock was trading at $6.18 during after hour trading on Wednesday after it went green by 0.65%.