OREANDA-NEWS. Shaken by corruption scandals, state-owned PetroEcuador has appointed a new chief executive, its fifth in the last 24 months. Two of the firm's former chief executives are in prison and a third fled the country.

Corruption at PetroEcuador will be one of the biggest challenges facing the tiny Opec nation?s new government to be elected on 2 April. Two leading polls show a statistical dead heat between government-backed Lenin Moreno and reform-minded rival Guillermo Lasso.

PetroEcuador?s new chief executive is navy engineer Jose Luis Cortazar, regarded as an anti-corruption specialist. He replaces Pedro Merizalde, who is being investigated by Ecuador?s attorney general for alleged perjury after his name was linked to an offshore company featured in the so-called Panama Papers, which in Ecuador?s case revealed a scheme to conceal bribes and illicit gains from corruption as well as tax evasion.

Merizalde resigned invoking personal reasons.

Cortazar served as state-owned PetroAmazonas chief executive for five months until September 2016, when he was appointed as PetroEcuador's refining manager. He previously headed oil regulator ARCH and served as Ecuador?s anti-corruption secretary.

Under Merizalde's tenure, PetroEcuador launched a plan to tackle corruption amid an unraveling scandal involving a controversial $2.3bn overhaul and maintenance of its 110,000 b/d Esmeraldas refinery.

Merizalde asked the government controller to audit more than 400 contracts signed by PetroEcuador mostly over the last five years. In that period, the firm had three chief executives: Marco Calvopina, Carlos Pareja Yannuzzelli and Alex Bravo.

Calvopina, who held the position from January 2011 to July 2015, was detained on 10 November 2016 as part of a corruption probe linked to contracts for the year-long Esmeraldas upgrade, in addition to his suspected involvement with offshore companies in tax havens.

Pareja, who succeeded Calvopina, resigned in November 2015 when he was appointed oil minister.

After a short stint at the oil ministry, Pareja resigned on 29 April and fled the country on 28 September, amid bribery suspicions and his involvement with offshore companies.

Bravo, who was in charge of the Esmeraldas overhaul and then succeeded Pareja at PetroEcuador in November 2015, resigned in April 2016 and was jailed as part of an investigation of contracts allegedly awarded to companies directly owned by or linked to members of Bravo's family and a scandal over funds held in Panama.

The three accused oil executives have not commented directly on the case, although Pareja has released videos in which he targets Jorge Glas, the powerful sitting vice president, as the mastermind behind of the corruption scheme.

According to Pareja, the scheme includes not only the Esmeraldas revamp but also a dozen oil-backed contracts signed by PetroEcuador mostly with China?s Sinopec and Unipec, which have committed Ecuador?s crude exports until 2024.

Glas oversees Ecuador's strategic sectors such as oil, power, telecommunications and mining, and is the vice-presidential pick of Moreno, the candidate of President Rafael Correa?s populist Alianza Pais movement.

Moreno won a majority of the votes in the 19 February first-round presidential election. But his candidacy fell half a point short of a sufficient margin to avoid a second round against CREO rival Lasso, a former finance and energy minister and former head of Banco de Guayaquil, who vows to reform the oil sector and attract private-sector investment.

Poll data from Cedatos and CMS points to a virtual tie between Lasso and Moreno in next month's run-off ballot.

Cedatos forecasts that Lasso will obtain 44.2pc of the vote and Moreno 42.8pc, but the poll has a 3.4pc error margin. CMS gives Moreno a 36.7pc of the vote and Lasso 35.8pc, with an error margin of 1.3pc. The polls show that many voters remain undecided.