Transpetro president Sergio Machado. Image courtesy of Fatos e Dados Petrobras/Youtube.

Petrobras transportation chief Sergio Machado had his unpaid leave extended for 30 more days Monday as the state owned company continues to investigate corruption allegations.

Machado, president of tanker and pipeline unit Transpetro, stepped down temporarily on November 3 amid a months long police probe into alleged kickbacks, bribery and money laundering at Brazil’s Petrobras.

His initial unpaid leave period was set to expire in December.

Last month, Petrobras was forced to delay its third quarter results twice after PricewaterhouseCooper refused to sign off on accounts linked to Machado.

Earlier this year, former downstream executive Paulo Roberto Costa was arrested on corruption charges and later admitted to taking a $636,000 bribe tied to the company’s 2006 purchase of a Texas refinery.

Costa alleges executives were skimming as much as 3 percent off the price of contracts and giving the money to political organizations, including campaigns run by Machado.

Machado, a member of the Brazilian Democratic Movement Party party who first joined the senate in 1994, has denied the allegations.

Transpetro executive director Claudio Ribeiro Teixeira Campos has been appointed acting president until Machado returns to the company.

Petrobras was served with a subpoena from the U.S. Securities and Exchange late last month requesting unspecified documents.

The SEC has not disclosed details about its request.


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