TCU approves Eletrobras capitalization process

The Federal Court of Auditors (TCU ) approved by majority the continuation of the capitalization process of electrobras , in which the Union will no longer control most of the state-owned company’s share capital. There were 7 votes in favor and one against, by Minister Vital do Rêgo.

The vote of the rapporteur, Minister Aroldo Cedraz, was in favor of the process, accepting most of the proposals from the technical unit and the Public Ministry and suggesting specific adjustments to the model proposed by the federal government .

Cedraz was accompanied by ministers Benjamin Zymler, Bruno Dantas, Walton Alencar Rodrigues, Jorge Oliveira, Antonio Anastasia and Augusto Nardes.

The trial at the TCU involved the second part of the analysis of the capitalization , referring to the modeling of the procedure. In February of this year, the agency had already approved estimates of the amount moved by the process, in the region of R$ 67 billion.

With the approval, the government expects to carry out the offering of shares of the company until July, without inserting the capitalization in the electoral window from the second semester.

In his vote this Wednesday, Minister Vital do Rêgo pointed out six alleged illegalities in the process, including the valuation of Itaipu and the dividends linked to Eletronuclear, criticized the government’s lack of transparency, errors in the calculation of Eletrobras’ value and proposed that capitalization be suspended until a TCU investigation into provisions was completed. However, he was not followed by the other ministers.

“I cannot speak of the values, which are kept confidential, but I can say that the relationship is outrageous. Is it over there [Itaipu] it wasn’t understated, it was almost given away. It is not known whether the error in the calculation is a willful error, with a plot behind it, or culpable”, said Minister Vital do Rêgo in his vote.

Minister Zymler defended adjustments by Eletrobras on how to improve the explanation of price composition, as a recommendation and suggestion, to clarify the studies.

deadlock in the TCU

The trial by the TCU began in April, but was postponed after Minister Vital do Rêgo asked for a review.

Initially, the analysis period requested by Vital was 60 days, which would make capitalization unfeasible this year. However, after requests from colleagues, the period was reduced to 20 days.

During the TCU session last Wednesday (11), the minister anticipated some elements of his vote and the problems he would have encountered.

The minister claims to have identified a “high accounting of provisions for contingencies” and determined that the technical area of ​​the TCU open an internal investigation to investigate them. Provisions refer to financial liabilities with an uncertain value or payment date.

According to him, the problem would be that, in the 3rd quarter of 2021, Eletrobras increased from R$ 17 billion to R$ 26 billion the value of the so-called individual provisioning to meet judicial decisions contrary to the state, but without a defined date for payment.

The minister understands that, if Eletrobras is capitalized and this amount is reverted in favor of the company, today’s shareholders will have lost these resources with the sale.

Vital do Rêgo also asked to be seen in the judgment of the first part of the capitalization process, when he disagreed with the government’s accounts on the grant amount that Eletrobras would need to pay to operate hydroelectric plants.

At the time, the trial was postponed in 2021 and resumed in February of the following year, but the minister’s position did not win majority support, which followed only the adjustments proposed by Aroldo Cedraz .