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Boston, MA 09/29/2014 (wallstreetpr) – Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) nosedived by more than 11% during opening trade session today after the Brazilian President Dilma Rousseff called the company’s contributions to fund 2010 candidacy of Rousseff is baseless. The comments referred to an newspaper article that appeared in the weekly edition of Veja, disclosing the information of a former Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) executive of funding the election financing needs of Rousseff during 2010 elections.

Factoid

Meanwhile, Rousseff’s contenders in the Oct. 5 election view the allegation as serious and have demanded detailed investigation into the case. According to Rousseff, the story published in Vega is “factoid”, which is a Brazilian term used to refer those stories or reports that are sensational in nature and are printed in order to amass a huge attentiona, but the truthfulness of such reports are not always true. Rousseff is so far leading ahead of her competitors as per polls results and said that the Vega magazine has used the story just before the eve of the election to seek attention. Rousseff added that Congressman Jose di Filipi being the offician and treasurer for 2010 campaign was the only person entrusted with the work to seek contributions.

Allegations By Ex-Staff

The story published in Veja released details of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) former executive Paulo Roberto Costa, who said that the company helped the Presidential election campaigning efforts through contributions in exchange of the lifting of charges against him. It is to be noted that Costa has been found guilty of corruption at Petrobas and is currently in jail for two months. Costa disclosed that several politicians are involved in corrupt practices that are linked to the company. He alleged that the former finance minister, Antonio Paloccii also solicited 2 million reais or $870,000 during the election campaign of 2010, when he was serving as a coordinator.

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