Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has once again found itself at the Centre of controversy. Anti-government protests in Brazil entered day two, over which the company has a major involvement.
The protests are pressing upon President Dilma Rousseff, raising her disapproval ratings due to the involvement in corruption allegations with the state oil company, Petrobras. The corruption scandal has greatly affected the country’s economic performance, and has initiated inter-political disagreements.
Protests have mainly expressed disapproval and disappointment with the poor and corrupt governance. The protests have so far received the support of many other countries as well as massive backing by social media. The social networks have also been key in motivating the masses.
Brazil’s situation is ominous, with threats for military coups looming on. Various groups are also pushing for the impeachment of presidentRousseff as well as loosening of the law which most Brazilians feel has been too strict. Television media showed images of demonstrators in different states within the country, taking to the streets. Most of the demonstrators were wearing the yellow and green colors of the Brazilian flag. They also had banners with their messages clearly expressing their demand for the exit of their current president.
Most of the protestors have their anger faced towards Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR). The company is said to have been involved in bribes worth over $800 million with a group of engineering firms. The corruption in the oil company is alleged to have begun in in1997, a few years before Dilma’s government took over the leadership of the country. Rouseff has not been implicated despite the fact that she is a former chairwoman of the oil company. Furthermore, most of her ex-colleagues have already been implicated in the corruption scandal. This has angered many, clearly showing discrimination of the law because of her current position.
Impeachment of a president would not be new for Brazil. If Rouseff was to be impeached, she would go down in the country’s history as the second president to be impeached. Lawyers claim that she can only be claimed if there emerges evidence that can directly link her to the corruption charges.