CNE wants to join Adin of AGU to reinforce rejection of Eletrobras sales model (ELET6)

The National Electricity Collective (CNE) will apply to the Federal Court of Justice (STF) next Monday, 8th, for approval as a amicus curiae (Friend of the Court) in the lawsuit of unconstitutionality (Adin) proposed by Attorney General of the Union (AGU) against the privatization model of Eletrobras (ELET3;ELECT6). The expression amicus curiaeused, according to the Supreme Court (STJ), to designate the third party joining the proceeding to award jury subsidies.

The CNE is represented by Advocacia Garcez, who also cites three other lawsuits in the STF representing the CNE against the privatization of the company. The operation was carried out at B3 in June last year, through the dilution of Union’s stake, which remained at 43% of the company’s capital.

The aim of the CNE to join the government’s action is to add new arguments that reinforce the need to reverse Eletrobras’ current corporate scenario, the lawyers inform.

“The attempt to convert Eletrobras from a public company to a public company does not allow for rushed procedures such as privatization, and the existence of blocs of shareholders is concrete evidence that the Bolsonaro government’s plan for the state-owned company has failed and continues to fail,” explain the lawyers Elisa Alves and Maximiliano Garcez of Advocacia Garcez.

President Luiz Inácio Lula da Silva arrived this Saturday during the coronation of King Charles III. in London, UK, revisited the subject. He said that intends to file another lawsuit challenging the privatization of Eletrobras. Yesterday (5) the Advocacia Geral da União (AGU) submitted the Adin signed by President Lula to the STF but to ask for an increase in the voting power of the Union, which owns 43% of the holding company and votes power to 10% limited.

According to the lawyers, the other lawsuits, which have not yet received injunctions – as Eletrobras President Wilson Ferreira Jr. pointed out yesterday – question, for example, the obligation to auction thermal power plants, which is part of the approval of the company’s privatization in Congress and the unblocking of the transmission line of the Tucuruí hydroelectric power station in Pará without consulting the indigenous peoples of the region.

Another lawsuit, says lawyer Elisa Alves, calls into question the sale model due to the lack of competition in the sale of shares, a basic requirement of the privatization model.

The lawsuit filed yesterday by the AGU relates very directly to the current state of Eletrobras, explains Alves.

“Today (Eletrobras) is incorrectly a corporation but definitely not because there are blocs of shareholders, multiple shareholders are easily identifiable, so it has lost the character of having such a wide range of shareholders that it cannot have an owner”, evaluate . “If shareholders are unable to exercise proportionality in their votes, then the parity that should exist within a public company does not exist,” he added.

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