BRASILIA (Reuters) – A Brazilian judge has suspended Pietro Sampaio Mendes, chairman of state oil company Petrobras, over a conflict of interest related to his role at the Energy Ministry, according to a court decision seen by Reuters on Thursday.
Petrobras did not immediately respond to a request for comment on the decision handed down by Sao Paulo Judge Paulo Cesar Neves Jr., who also ordered Mendes’ wages to be suspended.
In addition to the conflict of interest, the ruling also cites other alleged non-compliance issues, including the failure to use a recruiter when Mendez was appointed to the position.
The decision comes after a Sao Paulo court on Monday suspended another board member, Sergio Machado Rezende, for “alleged failure to comply with the requirements of the company’s articles of association in his appointment,” according to a company statement.
Two other board members could also be removed due to conflicts of interest or failure to meet the necessary requirements to perform their functions, a company source said.
Petrobras shareholders appointed Mendes to the post last year.
The firm’s previous board of directors, selected by the administration of right-wing former President Jair Bolsonaro along with an internal committee, initially ruled that Mendes and three other members of the new board were unsuitable, in Mendes’ case citing his ministerial role.
However, shareholders approved the nominations.
This week’s rulings come as tensions mount over the board’s decision to suspend an extraordinary dividend against the wishes of Chief Executive Jean-Paul Prates, who called for half the available amount to be distributed.
The conflict over dividends has worsened Prates’s relationship with the country’s energy minister and fueled speculation about the possibility of his dismissal.
However, sources told Reuters on Wednesday that pressure on Mr. Wright had eased and he was likely to remain in his position for now.