Government nominee for Petrobras does not meet requirements, says counselor representing employees

The process for Caio Paes de Andrade to become president of Petrobras will take a decisive step on Friday (24), when a company committee will assess whether the person appointed by the Ministry of Mines and Energy for the position meets professional requirements, which in the assessment of an adviser to the state-owned company could complicate the government’s plans.

Although the government believes that Andrade meets the requirements for the position, a senior government official told Reuters, counselor Rosângela Buzanelli, a representative of Petrobras employees on the state-owned company’s Board of Directors, does not agree.

With José Mauro Coelho’s resignation from the post last Monday (20), the approval of Andrade’s name by Celeg (Petrobras’ Eligibility Committee), on Friday, is seen as a move that can finally pacify the relationship between the company and the controlling shareholder.

Celeg’s endorsement would pave the way for the one appointed by the ministry — currently the special secretary for Debureaucratization, Management and Digital Government — to become the company’s president, after the government replaced the last three CEOs due to discontent over the pricing policy.

But if so, there would be a violation of Article 17 of the State-Owned Companies Act, Buzanelli said. According to her, this item establishes that, in order to be CEO of Petrobras, one must have a minimum professional experience of “ten years, in the public or private sector, in the area of ​​operation of the public company or mixed capital company or in an area related to that for the which are indicated in terms of superior direction”.

The article requires, alternatively, four years’ experience in a management position in a company of similar size, “public position of trust at a higher level (DAS-4) or even a teaching or research position in the company’s area of ​​activity”.

“The fact is that Andrade has no notorious knowledge in the area, he has a degree in social communication and has no experience in the oil and energy sector,” said the counselor, stressing that this is her assessment and not that of the council.

Some of the board members are part of Celeg.

Article 20 of Petrobras’ Bylaws, as quoted by the counselor, requires the company’s executive directors to have “professional capacity, notable knowledge and expertise in the respective areas of contact in which these administrators will work, observing the Basic Organization Plan” and “ten years of leadership experience, preferably in the business or in a related field, as specified in the company’s Appointment Policy.”

“The only professional foray of Caio Paes de Andrade compatible with the intended role was the participation of a year and a half on the board of PPSA (Pré-sal Petróleo SA), a Brazilian state-owned company that manages oil exploration”, she recalled.

“The appointment of Caio Paes de Andrade does not minimally meet the criteria defined in the legislation and in the company’s bylaws. It is an insult”, she added.

Asked if, despite these obstacles, Andrade could still manage to take charge of the company, the counselor pondered. “If nothing is done, I think it’s possible, because the decision is not the company’s technical area, it’s a committee of nominees and the Board.”

The Eligibility Committee is composed of the members of the Board of Directors Francisco Petros (Celeg’s president) and Luiz Henrique Caroli, while the external members are Ana Silvia Matte and Tales Bronzato. In addition, director Marcelo Mesquita, elected by minority shareholders holding preferred shares, was invited to evaluate the case, and would only give an opinion in the event of a tie.

For a source at the top of the government, who spoke on condition of anonymity, Andrade’s name “meets all the criteria” and must be approved.

Wanted, Caio Paes de Andrade preferred not to comment. The Ministry of Mines and Energy did not immediately comment.