Nunes Marques demands progress and extends deadline for discussion between government and Eletrobras

Minister Nunes Marques, of the Federal Supreme Court (STF), gave another 90 days for discussion between the government and Eletrobras about the Union’s voting power in the company after privatization.

The decision is this Wednesday (18) and is presented by the company and the Attorney General’s Office (AGU).

It is the third extension of time granted by the minister. In his decision, the judge demanded the demonstration of progress in the negotiations.

According to Nunes Marques, AGU and Eletrobras need to demonstrate, at the end of the 90-day period:

• engagement in favor of resolving the case;
• the stages covered indicating progress in negotiations;
• the adjustments, even if partial, signed, “so that the situation does not remain undefined for an indefinite period, nor does it contribute to the maintenance of a scenario of uncertainty”.

Negotiations between the government and Eletrobras are being conducted by the Mediation and Conciliation Chamber of the Federal Public Administration, after a determination by Nunes Marques.

At the beginning of August, Nunes extended the period for negotiations by 45 days, at the request of the parties. A first concession of extra time had been given by the minister in April.

“Complexity”

In the new deadline request, presented to the STF this Wednesday (17), AGU and Eletrobras stated that they remain “committed” to the adjustments to reach a consensus.

“However, given the sensitivity of the issues involved, in addition to the existence of technical and complex issues, the negotiations have not yet reached a conclusion,” they said.

According to the parties, more time is needed for in-depth discussions, due to the “inherent complexity of the case”.

“This is because it is not enough to simply reach a superficial consensus. It is imperative that all issues, even the most technical and controversial, are carefully examined and discussed, and delimited in the agreement to be subsequently delivered to this Supreme Court”, they stated.

AGU and Eletrobras also stated that this “rigorous” approach is “crucial” to guarantee legal certainty, avoiding “future disputes or legal uncertainties”.

“Furthermore, by addressing all issues comprehensively and definitively, the conciliation that is intended to be achieved soon will be more robust, providing not only immediate resolution of the conflict, but also a sense of stability and confidence for all parties involved, favoring an environment of greater predictability and security in legal relationships”, informs the request.

Action

The action on the matter was presented to the STF by President Luiz Inácio Lula da Silva (PT). It deals with the federal government’s challenge to the law that privatized the company, reducing the State’s voting power in the company.

The Union has voting power of just 10%, even though it owns 42% of the common shares of the former state-owned company.

The discussion of the case was forwarded, by Nunes Marques, for an attempt at conciliation in December 2023. In April of this year, the minister extended the discussions for another 90 days.

The privatization of Eletrobras was completed in June 2022 under the government of then president Jair Bolsonaro (PL).