Political Pressure Overthrows President of Petrobras

Securities commission investigates whether the exchange announcement, demanded by Lira and Bolsonaro, followed market rules

​Petrobras confirmed the resignation of its president, José Mauro Coelho, and the Securities Commission opened an administrative investigation to determine whether the state-owned company complied with market rules by disclosing its change of command.

Jair Bolsonaro had already fired Coelho, but he was awaiting a shareholders' meeting to endorse his replacement. But this Monday (20), after strong pressure from the government and the center, he decided to give up and leave the position.

FILE PHOTO: Jose Mauro Coelho, CEO of Brazilian state-owned oil company Petrobras, attends a signing ceremony of a contract for pre-salt oil fields with Brazil's Minister of Mines and Energy, Bento Albuquerque (not pictured), at the headquarters of the Ministry of Energy in Brasília, Brazil, April 27, 2022. REUTERS/Andressa Anholete - REUTERS

In his place, the current director of exploration and production of the company, Fernando Borges, takes over on an interim basis, since the name nominated the government, Caio Paes de Andrade, still needs to receive the approval of the shareholders, in a meeting without a date.

Coelho's departure reduced the chances of the Chamber complying with Bolsonaro's request to install a committee to investigate possible abuses by the company's management in the face of increases in fuel prices, which have angered the president.

The Planalto and the president of the Chamber, Arthur Lira, still plan to carry out projects to change the taxation or the company's readjustment rules, in an attempt to contain the price of oil derivatives.

Translated by Kiratiana Freelon

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