OREANDA-NEWS. November 28, 2016. A snowballing ethics scandal forced a top-ranking minister in Brazilian president Michel Temer's cabinet to resign today, throwing a curb into the government's plans to push through economic reforms, including key oil sector changes.

Just three months into his presidency, Temer is besieged by sinking approval ratings and an unruly congress, many of whom face corruption allegations related to a massive kickback scheme at state-controlled oil company Petrobras.

Oil, labor and pension reforms Temer had been expected to marshal through in an effort to revive the moribund economy have now been eclipsed by scandals that are beginning to threaten his own tenure.

Government secretary Geddel Vieira Lima, Temer's point man for corralling congressional support, tendered his resignation today, a week after allegations of ethics violations were lodged by former culture minister Marcelo Calero, who resigned last week.

Calero accuses Geddel, Temer, and other ministers of pressuring him to remove regulatory hurdles that were interfering with the construction of a residential building in Salvador, Bahia state where Geddel owns a property.

Temer and Geddel acknowledge they spoke with Calero on the matter, but deny any wrongdoing.

"The president treats all his ministers as equals, and never induced any of them to make a decision that hurt internal norms or their convictions," Temer's spokesperson said in a statement yesterday.

Temer has already lost a handful of ministers caught up in the Petrobras scandal since taking office provisionally in May. Temer officially replaced former president Dilma Rousseff in August after she was impeached in the Senate.

Since then, Temer has scored some reform victories, including the passage of a bill repealing a law requiring Petrobras hold a minimum 30pc stake in sub-salt projects, which he is expected to sanction before year-end, and lower house approval of a bill that would cap public spending for 20 years.

Senior executives from Shell and Statoil, among Brazil?s top oil private-sector oil producers, met recently with Temer to discuss other industry reforms deemed critical to investors.

Even though the process got off to a slow start, other oil reforms including an easing of local content rules, clear rules on unitization and an extension of Repetro tax benefits, are expected to be enacted soon. Most of the reforms only require the approval of an energy policy committee (CNPE) which is scheduled to meet on 8 December.

Multiple opposition parties, including Rousseff's Workers Party (PT), say they intend to file an impeachment action against Temer next week. The president is already facing one impeachment threat related to the same fiscal maneuvers that led to Rousseff's ouster, and both politicians risk having their 2014 campaign annulled on claims it received money stolen from Petrobras. Temer had served as Rousseff?s vice president.