The Brazilian Securities and Exchange Commission (CVM) has imposed a fine of approximately 170 million reais (31.5 million euros) on the former executive president of Portugal Telecom and Brazilian operator Oi, Zeinal Bava.
According to Brazil’s capital market regulator, the sanction was applied because of irregularities found in the context of the capital raise that paved the way for a merger of Brazil’s Telemar with Portugal Telecom, in 2014, resulting in the creation of Oi.
The unanimous decision was made on Tuesday in a ruling by Brazil’s CVM in which the body’s directors followed the vote of the case’s rapporteur, Alexandre Costa Rangel, who decided on sanctions against Bava and Oi’s former president and finance director, Bayard. Gontijo.
Bava was found guilty of receiving a trading bonus, which was paid to him without the approval of the company’s general meeting or board of directors.
The Brazilian CVM reported that the fine is equal to two and a half times the economic benefit received by Bava, updated by the index used to calculate inflation in Brazil.
In addition to the fine, the Portuguese executive was sentenced by the CVM to 10 years without being allowed to hold the position of administrator or fiscal member of any listed company in the country.
Al Gontijo, who at the time commanded Oi’s finance department and later became president of the company, was fined 24.6 million reais (4.8 million euros).
In addition to the two executives, José Mauro Mettrau Carneiro da Cunha, who was chairman of the board of directors of Oi, was fined more than 4 million reais (738 thousand euros) for wrongly receiving bonuses, says the CVM, and for having authorized payment to executives without the approval of the peer and shareholders at a meeting.
Source: DN
