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| Petrobras chief and other senior executives resign | Petrobras chief and other senior executives resign |
| (about 4 hours later) | |
| The head of Brazil's state-run oil giant Petrobras and five senior executives have resigned in the wake of a huge corruption scandal. | The head of Brazil's state-run oil giant Petrobras and five senior executives have resigned in the wake of a huge corruption scandal. |
| Maria das Gracas Foster's departure follows the arrest and testimony of some three dozen executives at Petrobras and many of its suppliers. | Maria das Gracas Foster's departure follows the arrest and testimony of some three dozen executives at Petrobras and many of its suppliers. |
| The board of Petrobras is due to meet on Friday to elect new executives. | The board of Petrobras is due to meet on Friday to elect new executives. |
| The scandal involves alleged price-fixing, bribes and kickbacks, which implicates Brazil's ruling party. | The scandal involves alleged price-fixing, bribes and kickbacks, which implicates Brazil's ruling party. |
| Prosecutors have uncovered around $800m in bribes and other illegal funds. More than 200 businesses are being investigated and more than 80 people, including three former executives from Petrobras, are facing possible charges. | Prosecutors have uncovered around $800m in bribes and other illegal funds. More than 200 businesses are being investigated and more than 80 people, including three former executives from Petrobras, are facing possible charges. |
| Petrobras shares soared 16% on Tuesday on rumours that Brazil's President Dilma Rousseff would sack the chief executive. On confirmation of the resignations, the shares initially jumped another 8% on Wednesday, but fell back to end the day just 1.1% higher. | |
| Corruption | Corruption |
| Petrobras is one of the largest oil businesses in the world with interests in Asia, Africa and the Middle East. | Petrobras is one of the largest oil businesses in the world with interests in Asia, Africa and the Middle East. |
| Analysis: Daniel Gallas, South America business reporter | Analysis: Daniel Gallas, South America business reporter |
| Not very long ago, Petrobras was living one of the most exciting moments in its 61-year history. | Not very long ago, Petrobras was living one of the most exciting moments in its 61-year history. |
| In 2007, the company discovered massive oil fields about 5km beneath the seabed off the coast of Brazil. | In 2007, the company discovered massive oil fields about 5km beneath the seabed off the coast of Brazil. |
| The then President Luiz Inacio Lula da Silva even joked that this was proof that "God was Brazilian". | The then President Luiz Inacio Lula da Silva even joked that this was proof that "God was Brazilian". |
| But much of that lustre has come off since last year, when a major corruption scandal was unveiled, including allegations that some executives were channelling 3% of the proceeds of major contracts straight to politicians' campaign funds or pockets. | But much of that lustre has come off since last year, when a major corruption scandal was unveiled, including allegations that some executives were channelling 3% of the proceeds of major contracts straight to politicians' campaign funds or pockets. |
| Petrobras is also facing financial challenges too. Low global oil prices have hurt the company's long-term investment plan. | Petrobras is also facing financial challenges too. Low global oil prices have hurt the company's long-term investment plan. |
| Also, as part of the Brazilian government's efforts to hold down inflation, the company has been subsidising petrol. That has helped consumers' budgets, but it has damaged Petrobras financially. | Also, as part of the Brazilian government's efforts to hold down inflation, the company has been subsidising petrol. That has helped consumers' budgets, but it has damaged Petrobras financially. |
| Rebuilding Petrobras' finances and reputation is the main challenge faced by whoever is appointed by President Dilma Rousseff. | Rebuilding Petrobras' finances and reputation is the main challenge faced by whoever is appointed by President Dilma Rousseff. |
| The illegal activity, the authorities allege, diverted anything from $3.7bn to over $28bn from Petrobras assets. | The illegal activity, the authorities allege, diverted anything from $3.7bn to over $28bn from Petrobras assets. |
| Ms Foster has said publicly that she offered to resign when the corruption scandal broke, but maintains she did nothing wrong. | Ms Foster has said publicly that she offered to resign when the corruption scandal broke, but maintains she did nothing wrong. |
| The scandal has also damaged President Rousseff, a former chairwoman of the company's board of directors. She has denied any knowledge of corruption. | The scandal has also damaged President Rousseff, a former chairwoman of the company's board of directors. She has denied any knowledge of corruption. |