New Minister of Mines and Energy asks Paulo Guedes, Minister of Economy, for approval on the privatization of Petrobras and PPSA
Just as there had been speculation about the privatization of Petrobras, the new Minister of Mines and Energy, Adolfo Sachsida, concretized the fallacies. This Thursday morning, the 12th, the Minister asked Paulo Guedes for studies to approve a possible privatization of PPSA (Pré-sal Petróleo) and Petrobras. In addition, the new Minister, during his first official statement to the press after taking office, informed that his first act as Minister would be to ask for the privatization of Petrobras and PPSA. After the new minister's request, Guedes informed that he would forward the request immediately, on the same day of the privatization request, to the PPI (Special Secretariat for the Investment Partnerships Program).
At the press conference, the new Minister said: “As I said yesterday, here is my first act as Minister of Mines and Energy, a formal request for the initiation of studies that focus on the beginning of the privatization process of PPSA and Petrobrás. I hope that we have this resolution ready as soon as possible so that the President of the Republic can sign it and begin this process that the Brazilian people have been waiting for.”
Guedes guaranteed to continue the request that aims to privatize Petrobras and PPSA
After the declaration of the new Minister of Mines and Energy, Paulo Guedes made his speech. In his statement, he guaranteed the continuity of studies aimed at privatizing Petrobras and PPSA. During the press conference he said: “The Minister of Mines and Energy delivered this to me today and I will forward it immediately to the Special Secretariat of the PPI, so that they can make a resolution that initiates the studies for the validation of the privatization of Petrobras and PPSA. Therefore, this must be done today. We will continue the studies for the PPSA and then [we will move on to] the case of Petrobras”.
Right at the end of his statement, Minister Paulo Guedes raised his voice with a number of trade unionists who were present at the press conference in order to demand wage adjustments, at the door of the Ministry of Economy headquarters. He declared that he did not want to comment on the comments made about thefts at Petrobras. For Guedes, those responsible for the “robberies” of the State have been convicted and he has nothing to say about it. For him, the important thing is to continue with the procedures for the privatization of Petrobras and PPSA. On the other hand, union members also raised their voices, shouting words that went against the idea of privatizing Petrobras and PPSA.
Petrobras and PPSA are in the government's sights
This Wednesday (11), President Jair Bolsonaro returned to exult with the press during an interview for Balanço Geral de Maringá (PR), a TV network. He fired: “Petrobrás is very fat! Your board and your directors could reduce the profit margin. Their profit margin is around 30%, while that of other oil companies is a maximum of 15%. Petrobras, you are Brazil! Or who's in there doesn't think about Brazil? The population is suffering from the price of fuel”. General Balance of Maringá (PR).
What is PPI
The PPI, Investment Partnerships Program, is the government entity responsible for managing privatization and government concession projects. The PPI is made up of numerous ministers and presidents of public banks, and is chaired by Minister Paulo Guedes. Decisions like this one about the privatization of Petrobras and PPSA are made in the PPI sector, which in the foreground judges whether privatization of companies is necessary and feasible. If the answer is positive, the case in question is taken for approval by the PPI board, which votes on whether or not to recommend privatization to the President of the Republic.
After that, if the request is granted, the president signs the decree that includes the company in the PND (National Privatization Program). From there, the procedures for privatization begin.
In specific cases by force of law, it is necessary to pass a bill in Congress for privatization to take place.
Minister says he will approve structural measures
Still regarding the first speech by the Minister of Mines and Energy, he comments that he intends to approve some structuring measures that make Brazil a safe haven for attracting private investment. The priority measures that he wants to be approved by Congress are: The modernization of the electricity sector, which opens up the free energy market for all consumers; Project aimed at changing the regime of pre-salt exploration, from sharing to granting, and also a project that changes the system of guarantees.
Still without mentioning the prices of petroleum-derived fuels, the new Minister of Mines and Energy also comments that the measures sought by him will have little or no impact, speaking of measures from the perspective of supply. Also, the new minister defended the progress of the privatization of Eletrobras. For him, it is an important sign for attracting more capital to the Brazil. The approval process of the Minister's request to Paulo Guedes is scheduled for trial at the TCU (Union Court of Auditors) next Wednesday (18).
