Body questions part of the law that reduced the Union’s participation in the command of Eletrobras in a smaller proportion to the shares it holds.| Photo: Fernando Frazão/Agência Brasil

The Attorney General’s Office (AGU) sent to the Federal Supreme Court (STF) this Monday (5) the presidency’s allegations to question points of the legislation that allowed the privatization of Eletrobras last year. The sale of the former state energy company has been criticized by Luiz Inácio Lula da Silva (PT) since the election campaign.

The document was presented within the scope of a direct action of unconstitutionality and asks that the Union have a stake in the company’s command proportional to the percentage of shares it holds – around 43%. However, the legislation defined that the government has only 8% of representation in the board of Eletrobras.

The AGU also states that the vote that allowed this device in the law had a tight score of just five votes, “which reveals the complexity of the discussions involving the subject and the need for the different interests involved to be subjected to a careful analysis” .

“The insufficient dilution of the Union’s share in the company’s share capital led to a situation in which its political rights (on shares acquired before privatization) were limited without adequate compensation”, completes the agency’s request.