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Petrobras receives the highest level of Secretariat Governance Index

Petrobras received the highest level of certification in the Governance Index from the Secretariat for Coordination and Governance of State-owned Companies (IG-Sest), the state-owned company said. The company reached a score of 9.79 in 2022, improving the result of the previous year (2021), in which it obtained a score of 9.39.

The classification takes place on the eve of expected changes in the company by the new government, and despite controversial appointments to the company’s Board of Directors made by the Bolsonaro government.

In addition to former president general Joaquim Silva e Luna, who had never worked in the oil and gas sector, the current president, Caio Paes de Andrade, also did not meet the requirements of experience and professional training required by the law of state-owned companies or by the statute of the company, having been, therefore, the target of a popular action led by the now nominated for the position, the ex-senator Jean Paul Prates.

Advisers were also approved despite being outside the stipulated standards, as was the case of the Executive Secretary of the Civil House, Jônathas de Castro, and the Attorney General of the National Treasury, Ricardo Soriano, both rejected by the Eligibility (Celeg) and People (Cope) from Petrobras due to conflict of interests, prohibited by the State-Owned Companies Law.

At the time, the government ignored the fact and deposited enough votes to elect both, who are still on the oil company’s Board of Directors.

The IG-Sest is the indicator used by the Secretariat for Coordination and Governance of State-owned Companies (Sest) to encourage the implementation and development of good governance practices in state-owned companies. The 6th Certification of the IG-Sest Governance Indicator evaluated 55 state-owned companies. Among the state-owned companies evaluated, 14 were classified at level 1 governance, including Petrobras, and another 14 at level 2.

“Petrobras’ certification demonstrates external recognition of the improvements implemented in Petrobras’ governance in recent years and serves as an incentive for us to continue improving,” said Petrobras’ Governance and Compliance director, Salvador Dahan.

Stricter rules for appointing relevant positions at Petrobras were implemented after Operation Lava Jato, which investigated crimes of embezzlement of company resources by directors from political appointments.

The companies were evaluated in 46 questions, in the following dimensions: boards and directors; transparency; and risk management, controls, and auditing.

In addition to assessing compliance with various legal, infra-legal and good practice provisions applicable to companies, the 6th cycle of the IG-SEST incorporated new aspects of governance based on recommendations and guidelines from the Organization for Economic Cooperation and Development (OECD), in particular items related to environmental issues and sustainability.

In addition to Sest, the assessment is carried out by independent members, such as representatives of Brasil Bolsa Balcão (B3); Dom Cabral Foundation (FDC); the Getúlio Vargas Foundation (FGV); the Brazilian Institute of Corporate Governance (IBGC); the Brazilian Institute of Investor Relations (IBRI); from the Institute of Applied Economic Research (IPEA) and the University of Brasília (UnB).

Source: CNN Brasil

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