The Brazilian Securities and Exchange Commission (CVM) imposed a fine of about 170 million reais (31.5 million euros) on the former CEO of Portugal Telecom and the Brazilian operator Oi, Zeinal Bava.
According to the regulatory body of the Brazilian capital market, the sanction was applied due to irregularities detected in the context of the capital increase that paved the way for a merger of the Brazilian Telemar with Portugal Telecom, in 2014, which resulted in the creation of Oye
The unanimous decision was made this Tuesday, in a trial by the Brazilian CVM in which the agency’s directors followed the vote of the rapporteur of the case, Alexandre Costa Rangel, deciding sanctions against Bava and the former president and financial director of Oi. , Bayard Gontijo.
Bava was found guilty of receiving a business 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 equivalent to two and a half times the economic advantage 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 spend 10 years without being able to hold the position of administrator or fiscal member of a public limited company in the country.
Already Gontijo, who at that time commanded the financial area of Oi and later became president of the company, received a fine of 24.6 million reais (4.8 million euros).
In addition to the two executives, José Mauro Mettrau Carneiro da Cunha, who was president of Oi’s Board of Directors, received a fine of more than 4 million reais (738,000 euros) for having improperly received a bonus, says the CVM, and for having authorized the payment to executives without the endorsement of the collegiate and the shareholders in assembly.
Source: TSF
