TCU gives endorsement for Mercadante to take over BNDES

In response to the consultation of the Luiz Inácio Lula da Silva (PT) government, Minister Vital do Rêgo, of the TCU (Union Court of Auditors), released the appointment of Aloizio Mercadante as president of the BNDES (National Bank for Economic and Social Development) .

Since Mercadante was announced by Lula as the bank’s future president, specialists pointed out that the nomination could violate the State-Owned Companies Law.

The legislation says that “it is prohibited to appoint, to the Board of Directors and to the board of directors, a person who acted, in the last 36 (thirty-six) months, as a participant in the decision-making structure of a political party or in work linked to the organization, structuring and conducting electoral campaigns [§ 2°, inciso II da lei]”.

Mercadante, however, alleged that he had neither coordinated the campaign nor participated in the PT’s decision-making structure or been remunerated by the party. The court understood that, for this argument, the appointment does not violate the Law of State-Owned Companies.

The consultation with the TCU had been carried out by vice-president Geraldo Alckmin (PSB), as coordinator of the transitional cabinet. Alckmin asked the court whether there was a prohibition in the current legislation to indicate to the board of directors of companies “the person who, in an unpaid way, contributed with activity of an intellectual nature, such as the one who participated in the elaboration of the government program of candidate for office elective”.

TCU understood that there is no conflict of interest.

“In view of all these considerations and, in conclusion, I consider that the most appropriate exegesis, which reflects the best law and avoids the conflict of interest that one wants to avoid, is in the sense that it is not covered in the prohibition of item II of § 2 of article 17 of Law 13.303/2016 the person who participated in an electoral campaign, in an unpaid way, merely with an intellectual contribution”, replied Minister Vital do Rêgo, rapporteur of the consultation.