Government recommends reappointment of Union representatives to Petrobras' board.
The six names nominated for reappointment will now be re-evaluated by Petrobras' Eligibility Committee, where they will undergo integrity and governance tests.
RIO DE JANEIRO (Reuters) - The Ministry of Mines and Energy sent a letter to Petrobras indicating the reappointment of the six members representing the Union on the company's board of directors, two sources close to the discussions told Reuters on Friday.
The official letter was sent despite recent news indicating an interest from the current administration of the oil company in suggesting other names to the government. The election of the board will take place on April 25th, at the Ordinary General Meeting of shareholders. When contacted, Petrobras did not immediately comment on the matter.
The appointment of members to the Petrobras board is the responsibility of the Ministry of Mines and Energy, currently led by Alexandre Silveira (PSD), who publicly criticized the leadership of Petrobras, headed by Jean Paul Prates, a former senator for the PT, last year.
One source told Reuters that Prates asked the Chief of Staff, Rui Costa, to allow him to nominate one of the board members in early January, but the idea was quickly dismissed. Columnist Malu Gaspar, from O Globo, published this week that Prates was orchestrating "an offensive aimed at expanding the PT's control over the state-owned company's board of directors and removing board members linked to the Minister of Mines and Energy."
The six names nominated for reappointment will now have to be re-evaluated by Petrobras' Eligibility Committee (Celeg), where they will undergo integrity and governance tests, the source said, adding that since they are already members of the committee, there should be no impediments to them remaining in their positions.
The names of those to be reappointed as representatives of the Union are Pietro Mendes, as member and president of the board, in addition to board members Jean Paul Prates, Vitor Saback, Renato Galuppo, Bruno Moretti, and Sergio Machado Rezende. The news of the reappointment was published earlier by the specialized agency epbr.
Petrobras' board currently consists of 11 members. In addition to the six appointed by the government, four members now represent minority shareholders and one was elected by the employees.