Image courtesy of Daniel Carvalho/Youtube.

The board of directors of Brazil’s Petrobras are slated to restart stalled talks Tuesday after PriceWaterhouseCoopers refused to sign off on the company’s third quarter earnings.

The company suspended an October 31 board meeting and delayed the release of its third quarter results after PwC reportedly declined to approve results for any accounts tied to transport chief and politician Sergio Machado, news agency Agencia Estado.

Former downstream head Paulo Roberto Costa has alleged that funds from state owned Petrobras were used for illegal political campaign financing, including campaigns run by Machado.

Machado, a member of Brazil’s Democratic Movement Party, has denied Costa’s allegations.

Costa is currently awaiting trial for allegedly participating in a $3.96 billion money laundering scheme.

In September, Costa admitted to taking a $636,000 bribe in connection with the state-owned company’s 2006 purchase of a Texas refinery.

Public prosecutors have already recommended that Machado be removed from his position at Transpetro, Petrobras’ transportation arm.

Machado has served as the unit’s head since 2003.

Petrobras has not commented on whether it will remove Machado from his post.

The company has hired two law firms to help it investigate corruption, money laundering and bribery allegations against key executives.

Last week, the company said it was a “victim” in the probe and that it is working with police officials to aid in the investigation.

The deadline for releasing third quarter earnings is November 14.


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