Government tries to avoid strengthening Petrobras’ autonomy, say analysts

The government decided to withdraw from the agenda of the Petrobras Shareholders’ General Meeting the proposed changes to the statute to strengthen autonomy and shield against political interference. The information was obtained by CNN Brazil and confirmed by the Ministry of Mines and Energy (MME), the state-owned company’s supervisory body in the federal government.

The changes were presented in the call notice for the Extraordinary General Meeting (AGE) on March 8 and are considered by the market, executives and government officials, as the main point of this Wednesday’s meeting (13). In the note sent to CNN Brazilthe MME says that “the topics that would be addressed in the Extraordinary General Assembly

following the Ordinary General Assembly (AGO), will be addressed at a next opportunity, as the matters are no longer submitted to the supervisory Ministry for consideration, as provided for in the Ordinance of the Ministry of Economy”.

Sources heard by CNN Brazil affirm that all requirements were met and see the MME’s justification for removing the topics from the assembly’s agenda as a political maneuver by the government. The most urgent change, in the view of those who are in favor of Petrobras’ governance, is that it protects the state-owned company’s Compliance Department. The department reports directly to the Board of Directors and its executive can only be dismissed with the consent of the collegiate.

Under the proposal, the decision must be transferred to all shareholders, with the convening of a new meeting. This would give publicity and transparency to the attempt to dismiss the director responsible for complying with the laws, regulations and rules provided for by Petrobras’ own statute.

The AGO/AGE is conducted by an independent lawyer, hired by Petrobras, in compliance with the determination of the Securities and Exchange Commission (CVM). Francisco Augusto da Costa e Silva will determine, at the time of consideration of the agenda, whether or not the amendments to the statute will be put to a vote.

The Attorney General’s Office of the National Treasury, which represents the federal government at the AGE, must request the withdrawal and present the justification given by the MME, according to the note sent to CNN Brazil. It is not common for the Secretary of the Meeting to go against the majority shareholder, but it is not impossible. It would be an “extremely rare” event, according to executives heard by the column.

In any case, the decision to avoid voting on the amendments to the statute has already been considered by many market analysts as a bad sign about the government’s strategy to keep open the loopholes that allowed the resignation of two Petrobras presidents in three years in office. .