Since the allegations and investigations of the Federal Police’s “Operação Lava Jato” money-laundering probe came to Petrobras’ attention, the company has taken important measures, culminating in the Board of Directors’ approving the appointment of Director of Governance, Risk Management and Compliance on November 25, 2014.

The new director’s mission is to ensure company process compliance and mitigate risks in its activities, including the risk of fraud and corruption, ensuring that it complies with laws as well as internal and external rules, standards and regulations.

The issues to be submitted for Petrobras’ Board resolution must now be approved in advance by this director regarding governance, risk management and procedural compliance. This new department will start its duties in 60 days, after structure and operating model has been set out.

The Board of Directors will appointment the new director from a shortlist drawn up by a specialist executive search firm. The director may only be dismissed by a resolution of the Board, with a quorum requiring the vote of at least one of the board members elected by minority or preferred stockholders.

Among the measures already adopted by Petrobras for the investigation are:

a) Internal Investigation Commissions have been set up and have finished looking at evidence or instances of non-compliance with corporate standards, procedures or regulations;

b) Contracts have been signed with two independent law firms specializing in investigations, one Brazilian and the other American, in order to identify the nature, extent and impact of activities that may have been committed against the company.

Alongside investigations and improvements to governance, Petrobras will continue to take legal measures to compensate for the alleged misappropriated funds and overpricing, as well as the damage to the Company’s image.