SAO PAULO: Former Brazil Finance Minister Guido Mantega says President Luiz Inacio Lula da Silva’s government sought him for a spot on the board of Braskem SA, and he will accept the job if shareholders approve.
“I was contacted by the Chief of Staff’s office and made myself available,” Mantega said in an interview when asked about the petrochemical producer.
“If the shareholders’ meeting decides this, then I will go to the Braskem board.”
The government is turning to Mantega, one of Lula’s closest allies and economic advisers, as it manoeuvres for greater influence in key companies.
Last month, Lula fired the chief executive officer (CEO) of Petrobras due to a dispute over the dividends it paid instead of using the money for investments.
The leftist leader is under pressure to raise spending, juice economic growth and halt a decline in approval ratings.
Specifically, Mantega could be appointed as vice-chairman of the Braskem board through Petrobras, according to a person with knowledge of the matter.
In that case, the former minister would have better chances of approval given his prior experience with the state-controlled oil company, the person said.
Lula tried to appoint Mantega as CEO and chairman of mining company Vale SA earlier this year in a move that prompted push-back from both its top brass and investors.
A 75-year-old member of the Workers’ Party, he was Brazil’s longest-serving finance minister under Lula and his successor Dilma Rousseff.
In that role, Mantega backed counter-cyclical financial measures to shore up Brazil’s economy after the 2007 and 2008 global financial crisis, though those policies led to a deterioration in public accounts.
On his watch, the government also intervened in the power sector to force down electricity prices.
The office of the Chief of Staff didn’t immediately respond to a request for comment. Braskem declined to comment.
Braskem shares fell 1.1% in trading on Monday, hitting their lowest level since Feb 16.
Mantega said Brazil’s main economic problem now is “irrational” monetary policy championed by central bank governor Roberto Campos Neto.
The country needs more investment to grow, and higher-than-necessary interest rates are driving up borrowing costs for companies, he said.
On top of that, Brazil’s inflation is under control, Mantega said, meaning there was no reason for policymakers to slow the pace of monetary easing.
Last month, Campos Neto, who was appointed by right-wing former President Jair Bolsonaro, led the majority of central bank board members that decided to cut benchmark Selic by a quarter-point, to 10.5%.
All four directors appointed by Lula, however, favoured a larger, half-point cut.
“The Bolsonaro government continues to manage monetary policy,” Mantega said.
“This is wrong. I’m not against central bank independence, but it has to be based on the new government. Otherwise you can have a conflict between financial policy and monetary policy, which is what is happening now.” — Bloomberg