Petrobras CEO announces creation of head of governance
Petrobras CEO Graça Foster
Petrobras CEO Graça Foster announced today (Nov 18) the creation of a head of governance, one of the 66 measures designed to improve the way the Brazilian oil giant is run. Two of the company's former directors are under investigation for a number of financial crimes. The probes are part of Operation Car Wash, launched by the Federal Police.
“We proposed to Petrobras's Administrative Council the creation of a board of directors for governance,” she said, adding that the idea was met with unanimous approval by the council members. In her view, this is the most important action among the 66 measures adopted.
Foster further said that she has been evaluating legal proceedings regarding the recovery of “embezzled funds, possible instances of overpricing, and compensation for the damages to the company's image.”
The investigations indicate that representatives from construction companies bribed directors and politicians in exchange for contracts with the oil firm.
“We'll seek [refund] wherever losses are detected, so that the company's cash reserves can be reinforced,” Foster pointed out. “A lot has been demanded from us, in an attempt to recover what we paid beyond what's normal, estimated, and reasonable,” she declared.
Due to the allegations, Petrobras was unable to issue its quarterly earnings report, whose release had been slated for Friday (14).
External audits were commissioned in an effort to ascertain the impact of the illicit wrongdoing mentioned by former Petrobras Supply Director Paulo Roberto Costa in a testimony. The company declared it will require access to his statements.
Petrobras further announced it has signed one-year contracts with two independent legal consultants: TRW (Trench, Rossi e Watanabe Advogados), for $2.3 million; and Gibson, Dunn & Crutcher LLP, for $5 million.
Translated by Fabrício Ferreira
Fonte: Petrobras CEO announces creation of head of governance
