According to the Associated Press, the acting president of Citgo has been detained. The overseer of the state-owned oil company's U.S. subsidiary and five other executives were detained for their alleged involvement in a corruption scheme, officials said Tuesday.

Jose Pereira and five Citgo Vice Presidents have been detained on suspicion of embezzlement that is reportedly from a $4 billion agreement to refinance company bonds, chief prosecutor Tarek William Saab said.

According to Saab the deal had "unconscionable and unfavorable" terms for state oil giant PDVSA and offered Citgo itself as a guarantee on repayment without prior government approval. Mediators of the contract were purportedly eligible for a 1.5 percent payoff of the total.

Saab explained the Citgo executives as facilitators of U.S. and international pressure on Venezuela's oil sector, "putting at risk Citgo's assets while obtaining personal benefits."

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