Lula Criticizes Eletrobras Privatization Plan and Claims “Banditry” Actions Led to Current Situation of Low Government Participation in the Company’s Internal Decisions

The Lula Government Is Being Marked By Strong Criticism Of The Divestment Of State Assets Proposed By Previous Presidential Terms. The Current President Criticized The Privatization Plan For Eletrobras, Calling The Company’s Administrative Actions “Banditry”.

After weeks of criticizing Petrobras’ divestment actions in its assets over the past years, current President Lula turned on Tuesday, (02/07), to the current situation of Eletrobras. The executive called the company’s privatization project “banditry,” stating that the Government has less and less stake in the company. In addition, Lula revealed that the Attorney General’s Office (AGU) will act to ensure state control of the company.

Check Out The Criticisms Made By President Lula

Current President Lula Again Criticizes The Privatization Plan For Eletrobras And Calls The Internal Administrative Actions “Banditry”

Current President Lula has strongly criticized the independence of the Central Bank in recent days and has resumed discussions on the topics of state divestments from previous governments.

The agenda revisited by the Executive on Tuesday was the current privatization project of Eletrobras, a company that was previously state-owned and now has only 40% government participation in its shares.

Lula criticized the current posture of the company in the national market, claiming that the process of concession of part of the shares to the private market occurred in “banditry.”

Furthermore, he took the opportunity to state that the AGU will not allow the low government participation in the company to remain as it is currently. The agency is considering taking necessary measures to expand state presence in Eletrobras.

“The government has 40% of the shares [of Eletrobras] and can only participate in the direction [of the company] as if it had 10%. If tomorrow the government is interested in buying the shares, the shares for the government are worth three times more than the normal value for another candidate,” Lula said.

The “banditry” actions in the privatization project for Eletrobras, according to Lula, were conducted to ensure low government participation in the company’s decisions.

Lula’s statements took place at the Palácio do Planalto during a breakfast with journalists from alternative media outlets.

The president again criticized the lack of government investments in companies that were initially state-owned, such as the energy company and the oil company Petrobras.

Lula Government Criticizes The Dismantling Of State Companies By Jair Bolsonaro’s Administration And The Current Situation Of The Eletrobras Privatization Project

Since he took office as the new President of the Republic, Lula has been constantly criticizing the dismantling of state companies carried out by Jair Bolsonaro during his government.

The privatization project for Eletrobras is one of the major examples carried out during the former president’s term.

The Union’s stake in the company decreased from 60% to 45%. Lula stated that the terms of privatization are “leonine,” as they make it very difficult for the Union to regain controlling interest in the company.

“[The privatization of Eletrobras] is against the government both in terms of share participation — we want more people in the direction, more people on the board — and in this business of not being able to buy because you will pay three times more,” Lula added.

The president stated that this is a Machiavellian situation and his government will not accept such circumstances in the coming years.

He wants the state to start buying shares in the company to ensure greater participation in internal decisions.

Now, it remains to wait for the next steps of the Lula Government regarding the privatization project for Eletrobras.