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Mayor Of Rio Asks The STF For 50% Of Petrobras’ Billion-Dollar Fund

Written by Paulo Nogueira
Published on 29/04/2019 at 12:10
Updated on 29/04/2019 at 21:20
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Marcelo Crivella, Mayor of the City of Rio de Janeiro, Requested on April 25 That the Supreme Federal Court Release Half of the R$ 2.5 Billion Blocked Due to the Agreement Between Petrobras and the Federal Public Ministry

The Mayor of Rio de Janeiro, Marcelo Crivella (PRB), asked the Supreme Federal Court to release half of the R$ 2.5 billion resulting from agreements between Petrobras and the Federal Public Ministry that are blocked by court order, to apply in the capital city, which, like the state, is experiencing a financial crisis that has been dragging on for the past few years. In the document, Crivella committed to returning the amount within 90 days if, in the future, the Supreme Court plenary does not agree that the city hall had the right to the amount. The request will be analyzed by Minister Alexandre de Moraes.

“Considering that the needs of the most disadvantaged cannot wait, and the demands of the common good, I request […] that Your Excellency authorize immediately, on a provisional basis, the release of 50% of the amount in question or another percentage that Your Excellency deems appropriate, for use in health, education, and in mitigating the deleterious effects of the heavy rains that are affecting the city,” wrote the mayor in the request.

To justify the release of half the amount for the City Hall of Rio, Crivella states that the city of Rio de Janeiro was severely harmed by corruption at Petrobras; thus, the mayor requested immediate release of 50% of the amount for aid in the city. “The municipality of Rio de Janeiro was the one that suffered, in the most dramatic way, the effects of Operation Car Wash,” part of the text says.

According to the mayor, the agreement between Petrobras and the United States foresees application in Brazil, without defining which cities or states.

The action being discussed was presented by the Attorney General of the Republic, Raquel Dodge, to the Supreme Court to block the decision of the Federal Public Ministry of Paraná. Initially, the oil company reached an agreement with U.S. authorities for the return of US$ 853 million to investors, as compensation for fraud within the state-owned company.

The task force of the Federal Public Ministry in Paraná then closed another agreement with Petrobras to define how the funds would be applied, which foresees the application of US$ 682 million in Brazil (about R$ 2.56 billion), half of which (about R$ 1.25 billion) that Petrobras was obligated to invest in Brazil would be applied to an endowment fund managed by a private foundation to distribute the earnings to projects combating corruption and promoting citizenship.

Addressing the considerations of the Attorney General’s Office, Moraes suspended the decision and also blocked the funds. Moraes is the rapporteur of the action presented by the Attorney General of the Republic, Raquel Dodge, which questioned the agreement made by the Federal Public Ministry of Paraná.

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Paulo Nogueira

Eletrotécnica formado em umas das instituições de ensino técnico do país, o Instituto Federal Fluminense - IFF ( Antigo CEFET), atuei diversos anos na áreas de petróleo e gás offshore, energia e construção. Hoje com mais de 8 mil publicações em revistas e blogs online sobre o setor de energia, o foco é prover informações em tempo real do mercado de empregabilidade do Brasil, macro e micro economia e empreendedorismo. Para dúvidas, sugestões e correções, entre em contato no e-mail informe@en.clickpetroleoegas.com.br. Vale lembrar que não aceitamos currículos neste contato.

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