The Brazilian Securities Commission (CVM) imposed a fine of around 170 million reais (31.5 million euros) on the former executive president of Portugal Telecom and Brazilian operator Oi, Zeynal Bava.
According to the Brazilian capital market regulator, the sanction was imposed due to irregularities found in the context of a capital increase, which set the stage for Brazil’s Telemar’s merger with Portugal Telecom in 2014, leading to the creation of Oi.
The unanimous decision was made on Tuesday by the decision of the Brazilian CVM, in which the directors of the body followed the vote of the rapporteur in the case, Alexandre Costa Rangel, deciding on sanctions against Bava and the former president and chief financial officer of Oi. , Bayard Gontijo.
Bava was found guilty of receiving a trading bonus that was paid to him without the approval of the general meeting or the board of directors of the company.
The Brazilian CVM said the penalty is equivalent to twice the economic advantage gained by Bava, updated by the index used to calculate inflation in Brazil.
In addition to the fine, the CVM sentenced the Portuguese executive to 10 years of inability to hold a position as an administrator or financial member of a public company in the country.
Already Gontijo, who was in charge of Oi’s finance at the time and later became president of the company, received a fine of 24.6 million reais (4.8 million euros).
Author: Portuguese
Source: CM Jornal
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