Silveira calls the market “twisted” for criticizing Petrobras’ dividend retention

Minister Alexandre Silveira, of Mines and Energy, criticized the market and “part of the press” this Monday (1st) for criticizing the government of President Luiz Inácio Lula da Silva (PT) when determining the cut of Petrobas’ extraordinary dividends, in the month past. The decision caused the state-owned company’s shares to plummet 10% the day after the announcement, with a loss of R$55.3 billion in market value.

Lula went so far as to say that there was a “market outcry” because of this and that the company should not “just think about the shareholders”. Minister Rui Costa, from the Civil House, also stated that he saw no problem with the decision that would have been negotiated and approved with shareholders.

Silveira reaffirmed that the decision to retain extraordinary dividends was agreed between shareholders and the government, and that ordinary dividends – with mandatory payment – ​​were “strictly complied with”. The remainder was sent to a contingency account “which is used exclusively to pay dividends”.

“There is a clear demonstration of market resistance as a result of the crooked mouth they have acquired in recent years, especially in the last four years of the Bolsonaro government, when they did what they wanted with Brazil”, said Silveira in an interview with GloboNews.

The minister states that he recognizes that state-owned mixed-economy companies must generate profits to compete internationally, but says that “they also have, and this is constitutional and in the State Law, a social duty towards Brazil. We cannot admit that Petrobras has the sole and exclusive objective of making exorbitant profits to be able to distribute to its shareholders.”

Alexandre Silveira highlighted that the government intends to remain focused on working for Petrobras to grow and generate more revenue, and that it is necessary to monitor whether the state-owned company’s management is executing the proposed investment plan.

Interference in Vale

Minister Alexandre Silveira also criticized claims that the government was interfering in the business of private companies – mainly the mining company Vale, in which there was an attempt to place former minister Guido Mantega in the presidency or on the board of directors. He classified it as “injustice”.

“There was a lot of speculation about this, I worked all the time, and so did President Lula, for Vale to solve its problems autonomously through its governance, but what we have is harsh criticism of the national mineral sector”, scored.

According to the minister, the mineral issue will be discussed by the government and that there are things that are not public knowledge, such as “serious distortions and crimes against the country that have been committed by the mineral sector”.

He cited cases such as the collapse of the Mariana dam (MG) and the detention of 476 authorizations by the Canadian mining company Rio Tinto that are not explored in the country.