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Rousseff further intervenes in Brazil’s leading corporation

Monday, April 25th 2011 - 07:54 UTC
Full article 6 comments
Deputy Finance Minister Nelson Barbosa is also chairman of Banco do Brasil Deputy Finance Minister Nelson Barbosa is also chairman of Banco do Brasil

Vale, the world’s largest iron-ore producer, named Brazil’s Deputy Finance Minister Nelson Barbosa, (a close ally of President Dilma Rousseff) as a member of the board after announcing earlier this month the replacement of its chief executive officer.

Barbosa, 41, will be one of four new members joining Vale’s board, the Rio de Janeiro-based company said in a regulatory filing after a shareholders meeting. Seven other board members had their mandates renewed until 2013, Vale said.

The announcement comes two weeks after Murilo Ferreira was nominated to replace Chief Executive Officer Roger Agnelli following two years of government calls for the company to invest more in domestic steel output and fertilizers. Ferreira, who was president of Vale’s Canadian operations until 2008, will take over May 22 after Angelli’s mandate expires, Vale said April 4.

Barbosa, an economist trained at the New School for Social Research in New York, occupied several positions at Brazil’s Finance Ministry since 2006 until being named Deputy Finance minister by President Rousseff. He also accompanied the president during her recent trip to China.

Barbosa is also chairman of state-controlled Banco do Brasil, Latin America’s biggest bank by assets, and a director at insurance company Brasilveiculos Cia de Seguros SA, according to an earlier regulatory filing by Vale.

The Brazilian government has indirect influence at Vale, which was privatized in 1997, through key shareholders including state development bank BNDES and state-linked pension funds.

Categories: Politics, Brazil.

Top Comments

Disclaimer & comment rules
  • GeoffWard

    So, ever so softly pack the Board with Government place-men.

    So that money-management in the company is controlled by the Brasilian Government.
    So that policy is controlled by the Brasilian Government.
    So that investment of the profits of this MULTINATIONAL PRIVATE COMPANY have to be invested in Brasil via the Brasilian Government.

    What if the shareholders want to do it differently?
    “What Lola wants, Lola gets”
    What Dilma wants Dilma takes.

    Nationalization! You know it makes sense! (SAD, WRY EMOTICON)

    Apr 25th, 2011 - 06:49 pm 0
  • Think

    Economic democracy working at its best!
    The Brazilian Government is the mayority shareholder......
    The Brazilian Government decides what to do with its property.....

    Apr 25th, 2011 - 07:06 pm 0
  • GeoffWard

    You probably actually *believe* that if banks and pension companies together have a majority shareholding, this makes the whole company Government Property!
    What sort of a sheltered world have you grown up in?

    Apr 25th, 2011 - 09:43 pm 0
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