Without citing Americanas, CVM president talks about ‘regrettable’ and ‘extremely serious’ case – 02/14/2023 – Market

João Pedro Nascimento, president of CVM (Securities and Exchange Commission), said this Tuesday (13) that the entity has been working hard to investigate a very serious case and that it will spare no effort to punish those responsible.

“The CVM does not comment on any specific case, but deals with rumored cases. Today we have an issue that has been consuming a very important effort from our team. We constituted a task force to deal with this matter”, said Nascimento, during an event from the BTG Pactual bank.

The president of the CVM responded after being asked, in general terms, about cases that could undermine confidence in the capital market.

“This matter is regrettable. The CVM will spare no efforts to hold each person responsible for the events responsible. This matter is classified internally as extremely serious. At the same time, we need to conduct it in an absolutely responsible manner, without anticipating conclusions”, said Nascimento.

He said that investigations are carried out by the technical areas, and do not involve the president or the collegiate, in order to maintain the impartiality of the investigations.

“The case tested the structure of checks and balances in the capital market. This case demands an efficient response. The CVM will spare no effort to carry out the work with technical rigor and responsibility, but we will not spare anyone who has committed illicit acts that they are capable of of weakening the capital market”, he concluded.

Earlier this year, Americanas said there was an accounting inconsistency in its balance sheets and that a liability of around US$20 billion had not been recorded. This made creditors rush to collect the retailer’s debts, which created the risk of drying up cash. To protect itself, Americanas entered into judicial recovery.

As the court-supervised reorganization progresses, it was found that the company’s debt was actually over R$40 billion.

The fact that Americanas managed to hide a billionaire debt led to complaints about the actions of entities such as auditing firms and the CVM, whose job is to ensure that the capital market works without fraud.