Brazilian Judge Suspends Petrobras Board Member Over Conflict of Interest
Brazilian Judge Takes Action Against Petrobras Board Member
In a recent development, a Brazilian judge has suspended Pietro Sampaio Mendes, the chair of state oil firm Petrobras’ board, due to a conflict of interest related to his role in the Ministry of Energy. This decision, as revealed by a court document seen by Reuters, has raised concerns over Mendes’ position within the company.
Legal Ramifications for Mendes
Petrobras is yet to respond to the judge’s ruling, which also includes a halt on Mendes’ wage and salary payments. The suspension is not solely based on conflict of interest but also on alleged non-compliance issues, such as the lack of involvement of a recruitment agent during Mendes’ appointment process.
Board Members Under Scrutiny
Following Mendes’ suspension, another board member, Sergio Machado Rezende, was also suspended earlier in the week for failing to adhere to the company’s bylaws in his appointment. There are indications that two more board members could face removal for similar reasons.
Internal Struggles and Shareholder Disputes
Amidst these legal challenges, Petrobras shareholders had initially appointed Mendes to his role last year, despite objections from the previous board and concerns over conflicts of interest. The recent rulings reflect growing tensions within the company and highlight disagreements over key decisions, such as the distribution of dividends.
Uncertainty Surrounding Chief Executive
The conflict over dividend distribution has strained relations within Petrobras, particularly between Chief Executive Jean Paul Prates and the energy minister. Speculation about Prates’ potential dismissal has circulated, but recent reports suggest that he is likely to retain his position in the near future.
