Tuesday, April 28, 2015

Eni x Petrobras: What do they have in common?

Many are the points in common between the Italian Eni and the Brazilian Petrobras.

The Blog Eni's Way will highlight some:

1) Both are the largest companies in their countries;
2) The Italian and Brazilian government are the main shareholders in each of them;
3) Most Directors of the Board are indicated by the government, ie, "politically indicated";
4) The CEOs are placed in their functions indicated by the Prime Minister, in the case of Italy, and by the President of the Republic, in the case of Brazil;
5) The companies management is far from being "independent" as it happens in the private companies. The governments have a complete interference.

However, Eni and Petrobras are different in two things, nowadays:

a) The former CEO and current CEO of Petrobras are not is not being investigated by the Public Ministry for paying bribes in other countries ("International Corruption");
a) Many executives in Petrobras received billions of dollars in bribes of 1% to 3% from contracts to provide services with the suppliers. These executives enriched illegally and also diverted millions of dollars from safes of various political parties that support the Brazilian government, including and especially the President's political party. Moreover, an Eni's subsidiary, that operates in Brazil, was mentioned by a payer of bribes to Petrobras in the statements made by Brazil's Federal Police.

Now, the Blog Eni's Way asks:

If there is an investigation into the contracts with Eni's suppliers, will the differences with Petrobras become another common point between the two companies?

What is your bet?

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