President of the Republic appointed General Joaquim Silva e Luna to the post of Roberto Castello Branco in the face of high fuel prices
Federal judge André Prado de Vasconcelos, of the 7th Federal Court of Minas Gerais, determined that the president Jair Bolsonaro and the Union explain, within 72 hours, the appointment of the general Joaquim Silva and Luna for the post of president of Petrobras. The announcement was made by the head of the Federal Executive on Friday, 19. If the nomination is confirmed, the military will replace the current president of the state-owned company, Roberto Castello Branco, appointed by Bolsonaro after the 2018 presidential elections.
The request for an injunction to prevent the replacement of Castello Branco was made by lawyers Daniel Perrelli Lança and Gabriel Senra. In the petition, they state that Bolsonaro is “embarrassing Petrobras’ Board of Directors” and interfering in the company for “political-ideological interests”. In his order, the magistrate affirms that “as widely disseminated by the media, the approval of the nominee for the Presidency of Petrobras depends on the decision of the respective Board of Directors, which has not yet taken place”. The Attorney General’s Office (AGU) stated that it does not comment on lawsuits pending.
The state-owned company suffered a further drop in shares and lost almost R $ 75 billion in market value on Monday, 22. The state-owned company has lost more than R $ 100 billion in market value since Friday, 19. Common shares of the company closed the second in a fall of 20.48%, while the preferred shares fell 21.51%. On Friday, the first day of decline, common shares closed down 7.92% and preferred shares fell 6.63%. The fall of Petrobras caused the Ibovespa to close the day down too. The main index of the Brazilian Stock Exchange closed the second with a decrease of 4.87%, to 112,667. The dollar also closed the day up 1.2%, being quoted at R $ 5.453, reaching the R $ 5.533 mark.