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Petrobras scandal: Worker's Party treasurer questioned Petrobras scandal: Workers' Party treasurer questioned
(35 minutes later)
Police in Brazil are questioning the treasurer of the governing Worker's Party in connection with a scandal involving state oil giant Petrobras. Police in Brazil are questioning the treasurer of the governing Workers' Party in connection with a scandal involving state oil giant Petrobras.
Party Treasurer Joao Vaccari Neto was not formally arrested but was taken to a police station to make a statement.Party Treasurer Joao Vaccari Neto was not formally arrested but was taken to a police station to make a statement.
The move comes a day after Petrobras CEO Graca Foster formally resigned.The move comes a day after Petrobras CEO Graca Foster formally resigned.
Investigators allege that companies paid inflated prices for Petrobras contracts and that money was funnelled to the Worker's Party and its allies. Investigators allege that companies paid inflated prices for Petrobras contracts and that money was funnelled to the Workers' Party and its allies.
This latest development is an uncomfortable moment for President Dilma Rousseff and her party, BBC Brasil's Gary Duffy in Sao Paulo says.This latest development is an uncomfortable moment for President Dilma Rousseff and her party, BBC Brasil's Gary Duffy in Sao Paulo says.
It had been alleged at earlier stages of the inquiry that politicians were involved in the scandal, but the questioning of Mr Neto moved it into a new phase, our correspondent adds.It had been alleged at earlier stages of the inquiry that politicians were involved in the scandal, but the questioning of Mr Neto moved it into a new phase, our correspondent adds.
Police said they were following up 62 additional warrants for detentions, arrests and searches.Police said they were following up 62 additional warrants for detentions, arrests and searches.
They said their action resulted from the analysis of documents and contracts seized earlier in the inquiry, as well as information from individuals already being questioned.They said their action resulted from the analysis of documents and contracts seized earlier in the inquiry, as well as information from individuals already being questioned.