Petrobras investigation eyes former Rousseff aide

OREANDA-NEWS. A Brazilian federal judge responsible for investigations into a massive corruption scandal involving Brazil's state-controlled Petrobras has flagged payments made to senator Gleise Hoffmann, the former chief of staff of embattled president Dilma Rousseff.

Sergio Moro, the judge overseeing the Petrobras graft investigation, has asked Brazil's supreme court to authorize an investigation into payments made from Brazil's planning minster to Hoffman. Only Brazil's supreme court has the jurisdiction to hear cases involving politicians.

Hoffmann, a federal senator for the state of Paran?, denies any wrongdoing. She is a member of the ruling Workers' party (PT) and served as Rousseff's chief of staff between 2011 and 2014, during Rousseff's first four-year term.

Hoffmann was included on federal prosecutor's list of around 40 politicians alleged to have benefitted from a scheme that diverted funds from inflated Petrobras' contracts to the PT and its allies.

The Petrobras scandal, coupled with a foundering economy and creeping inflation, has helped push Rousseff's approval ratings to single-digits and escalated calls for her impeachment. Rousseff served as Petrobras chairwoman between 2003 and 2010, but denies any knowledge of the scheme.

Brazil's electoral court is now considering opening an investigation into claims that Rousseff's 2014 re-election campaign received funds stolen from Petrobras.

The political crisis has pushed the Brazilian real to new lows, increasing borrowing cost for the heavily indebted Petrobras.