Petrobras committee rejects govt board nominees

Two of the Brazilian government’s seven nominees for an overhauled board at state oil company Petroleo Brasileiro (PETR4.SA) do not meet the requirements to hold the position, its eligibility committee said on Thursday.

Jonathas Assuncao Salvador Nery de Castro and Ricardo Soriano de Alencar, both chosen by President Jair Bolsonaro, are not qualified to become board members of the oil giant based on its internal bylaws, the committee concluded, according to the minutes of its last meeting.

The committee, known as Celeg, found that both candidates would have a conflict of interest serving on the board given that they have high ranking positions in Bolsonaro’s government. Castro is an official in the chief of staff’s office, while Alencar is the prosecutor general of Brazil’s national treasury.

Celeg’s report is non-binding. Both candidates can still be board members pending approval by the current board and by Petrobras’ shareholders.

The other five government picks and the two minority shareholder appointees received the go-ahead from the committee.

In June, the eligibility committee greenlighted the nomination of Caio Paes de Andrade as the state-run company’s next chief executive.
Source: Reuters (Reporting by Peter Frontini Editing by Marguerita Choy)