Brasilia (AFP) – The government of Brazilian President Luiz Inacio Lula da Silva announced on Tuesday that it had fired the CEO of state oil company Petrobras.
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The move follows a recent dispute between Petrobras and shareholders over dividend payments, raising concerns about government influence in decision-making at listed companies.
A presidential spokesperson announced Tuesday evening that Jean-Paul Prattes, a former state senator and ally of Mr. Lula, had been “dismissed.”
Mr. Prates, a lawyer and economist, was appointed by Petrobras' board in January last year, shortly after leftist Mr. Lula took office for his third term. Previously he held the position from 2003 until 2011.
Mr. Prates previously served as a senator for the state of Rio Grande do Norte and was a member of the Lula Workers' Party.
In nominating Prates to the position, Lula described him as an energy sector expert with 30 years of experience in the oil, natural gas, biofuels and renewable energy sectors.
But the 55-year-old has faced intense criticism in recent months after Petrobras announced it would not pay investors a special dividend after last year's net profit was its second-highest ever.
The March announcement caused the company's stock price to plummet and was seen by some analysts and opponents as direct government intervention.
Lula has repeatedly accused Petrobras executives of only caring about pleasing the group's shareholders, to the detriment of consumers.
At the time, Pretes said on the X show that it was “legitimate” for the board to take a position “with guidance from the president and his cabinet.”
He added that “that's exactly what happened” with the dividend decision.
Petrobras' board ultimately approved the dividend payment in late April.
The company confirmed in a statement on Tuesday that it had received a request for a board meeting regarding the early termination of Platz's role.
Slightly more than half of Petrobras' capital is held by the Brazilian state, with the remainder held by private shareholders.
The company had previously experienced a period of turmoil during the four-year term of Lula's predecessor, far-right President Jair Bolsonaro, who had expressed strong opposition to the company's pricing policies.
During that time, the company has had four CEO successions in quick succession.
The Brazilian government has not said who will replace Prates, but local media have mentioned Magda Chambriard, former head of Brazil's oil industry regulator, as a possible favorite.
© 2024 AFP
