The president of the TCU (Brazilian Federal Court of Accounts) says he doesn't see "much room" for the STF (Supreme Federal Court) to review the privatization of Eletrobras.
"I don't see much room for a judicial discussion. Let's see, the Supreme Court has the right to be wrong last many times, let's wait and see," said Bruno Dantas.
Reuters - The president of the Federal Court of Accounts (TCU), Bruno Dantas, stated this Monday that he does not see "much room" for the Supreme Federal Court (STF) to review the privatization of Eletrobras, after President Luiz Inácio Lula da Silva stated that the government may appeal to the court to contest the process carried out during the administration of his predecessor, Jair Bolsonaro.
"I consider the debate legitimate, but something that has been done, finished, completed, and is fully in effect, I consider it difficult for the Supreme Federal Court to get involved in a matter like this, where you have a legally perfect act," said Dantas at a conference organized by Arko Advice in São Paulo.
"The Constitution itself guarantees the legally binding act. I don't see much room for judicial discussion. We'll see, the Supreme Court has the right to be wrong last many times, let's wait and see," he added.
The privatization of Latin America's largest electricity company, carried out in the middle of last year, required changes to legislation, bylaws, and a substantial capital increase of over 30 billion reais, which diluted the federal government's stake and limited all voting rights to 10%.
Eletrobras' bylaws now include a "poison pill" clause to protect shareholders from acquiring significant stakes in the company. The current rule stipulates that a shareholder whose stake exceeds 30% of Eletrobras' capital must pay a 100% premium on the purchase price of the shares to all other shareholders in a takeover bid (OPA). To exceed 50% of the capital, the premium increases to 200%.
Brazil's Attorney General's Office began a study in February to determine what legal steps can be taken to challenge aspects of the Eletrobras privatization, at Lula's request. In an interview last week with the 247 news portal, Lula said he hopes the government will "return, if it is able, to owning Eletrobras."
In his participation in Monday's conference, the president of the TCU (Brazilian Federal Court of Accounts) stated that the Lula and Bolsonaro governments have distinct worldviews and that the alternation of power fosters discussion. However, he emphasized that the process was completed and no subsequent law was passed that could change what was done.
The TCU itself was one of the institutional actors that endorsed the privatization of Eletrobras, along with the National Congress.