In addition to Magalhães, another advisor appointed by Guedes, José Guimarães Monforte, gave up his position. Both officially leave their positions on Friday (2), according to a statement from BB to the market.
In the resignation letter, Magalhães criticizes Bolsonaro’s interference in the bank by appointing administrator Fausto de Andrade Ribeiro, 52, as the new president. According to him, Ribeiro was not screened by the Board of Directors. Considered a bolsonarista, he now heads the BB consortium arm.
Both were not nominated for a reappointment. Magalhães writes that, even if this happened, he would not remain in the post.
“In the case of BB, I refer to attempts to disrespect corporate governance, even if frustrated by the diligent performance of this board and by the soundness of the company’s governance mechanisms,” he wrote in justifying his departure. “As an example, I mention the external interferences in execution of the company’s efficiency plan approved by this board and obviously necessary to adapt it to the new times and challenges in the sector. On an ongoing basis, I renew my protest at the rite of choosing the new president of the bank, which simply does not consider the desirable screening of this board, since it is based on anachronistic legislation and contrary to the best governance practices at the global level.
According to him, the government, the bank’s controller, “has been treating the institution and other publicly traded state companies with repeated neglect.
A sheet he did not have access to Monforte’s letter of resignation. However, bank executives say the board member leaves the institution for the same reasons as Magalhães.
People who participated in the bank’s discussions say the government’s idea is to revert to an old BB policy of appointing economic secretaries to the board. Waldery Rodrigues, the current special finance secretary, is expected to chair the council. That way, say these executives, the government will have more control over decisions.
Bolsonaro decided to change the president of BB, André Brandão, by a name more in tune with him. Brandão is a market executive, worked at HSBC and was sympathetic to Guedes, who chose independent names to command state-owned companies and financial institutions controlled by the government —BB, Caixa Econômica Federal and BNDES.
Brandão conquered Bolsonaro’s dislike in January this year, after announcing the closure of 112 BB branches and a program of dismissal of more than 5,000 employees at the time of the high unemployment rate in the market.
Guedes resisted and, together with Caixa’s president, Pedro Guimarães, and Central Bank’s president, Roberto Campos Neto, tried to indicate a consensus name: Eduardo Dacache, director of Caixa Seguridade.
Planalto aides say Bolsonaro liked the executive’s profile, but wanted someone closer to him.
The interference with BB occurs as a result of the government’s interference in Petrobras. Bolsonaro dismissed Roberto Castello Branco because the executive did not agree to use the company’s cash to contain the transfer of fuel prices.
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