The Brazil Securities Commission (CVM) Board rejected a joint Termo de Compromisso settlement proposal submitted in Administrative Sanctioning Proceeding (PAS) 19957.009503/2018-15 by Maria das Graças Silva Foster, José Carlos Cosenza, José Alcides Santoro Martins, José Antônio de Figueiredo, José Miranda Formigli Filho and Almir Guilherme Barbassa, in their capacity as members of Petróleo Brasileiro S.A. (Petrobras) Executive Board. The Federal Specialized Prosecutor’s Office at CVM identified a legal impediment to entering into the agreement, and the Commitments Committee (CTC) recommended rejection as not convenient or timely given that impediment and the alleged seriousness of the conduct under review. The PAS, opened by the Sanctioning Proceedings Superintendence, examines potential breaches of the duty of diligence in July 2013 deliberations approving Phases I and II of the Premium I and II refinery project and its continuation despite warning signs of economic infeasibility, including alleged non-compliance with Petrobras’s Corporate Project System requirements, potentially constituting an infringement of Article 153 of Law 6,404.
Brazil Securities Commission (CVM) 2025-02-12
Brazil Securities Commission rejects settlement proposal by Petrobras executive directors in Premium I and II refinery project case
The Brazil Securities Commission (CVM) Board rejected a settlement proposal in Administrative Sanctioning Proceeding 19957.009503/2018-15 involving former Petrobras executives. The Federal Specialized Prosecutor’s Office identified a legal impediment, and the Commitments Committee recommended rejection due to the seriousness of the alleged conduct. The proceeding investigates potential breaches of duty of diligence related to the 2013 approval of refinery projects despite economic infeasibility concerns, possibly infringing Article 153 of Law 6,404.