Petrobras boss seeks free-mart 'efficiency' for oil giant
Published on: Saturday, January 05, 2019
RIO DE JANEIRO: The new boss of Brazilian state-owned oil giant Petrobras said Thursday that he wanted to draw a line under the company's graft-mired past and offer "a new dawn.""Monopolies restrict liberty," Roberto Castello Branco told a crowd of officials and Petrobras executives on the day he took up his functions. Petrobras a couple of years ago "was looted by a criminal organisation made up of corrupt politicians, enemies of capitalism, and a small group of employees," he said."Privileged people and monopolies are intolerable in a free society."
ADVERTISEMENT
The harsh words referred to a sprawling, multi-billion-dollar corruption scandal implicating Petrobras and political parties, including those from the Workers Party that ruled Brazil from 2003-2016.Investigations into the scandal, dubbed Car Wash, brought down politicians, including former leftist leader Luiz Inacio Lula da Silva, and resulted in Petrobras paying a $2.95-billion settlement to US shareholders.Castello Branco also referred to Petrobras piling up a vast debt load, which currently stands at around $73 billion.Brought in under new Brazilian Economy Minister Paulo Guedes – like him, part of the "Chicago Boys'" club of US-trained free-marketers who have graduated from the University of Chicago – he is intent on turning Petrobras around by reducing its statist dependency.
ADVERTISEMENT
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
His strategy, he said, was simple: better management, cut capital costs, seek efficiencies, impose a meritocracy, worker safety, and protection of the environment. "It's a new dawn for Brazil and for Petrobras. The time has come to promote transformational change, for shareholders who are under control of Brazilian society," he said. – AFP