• Register
Return to: Home > News > Big Four > Petrobras director in breach of ethics over Deloitte contract

Petrobras director in breach of ethics over Deloitte contract

Petrobras director of governance and risk João Adalberto Elek Junior was found in breach of ethics in hiring Deloitte on an advisory project while his daughter was being recruited by the firm and was subsequently hired.

At the end of 2015, Petrobras hired Deloitte for a R$ 25m (US$ 7.9m) contract, exempting a bidding process. Elek signed the contract on the part of Petrobras, but according to the Ethics Committee of the Presidency of the Republic of Brazil, this constituted a conflict of interest as at the time Elek’s daughter was going through a recruitment process at the firm, and she was subsequently hired.

The Chairman of the ethics committee Mauro Menezes said: “We concluded that the rules around conflict of interest had been violated. […] We consider it to be wrong and law-breaking behaviour.”

The ethics committee has issued a warning to Elek who is not prevented from remaining in his job. Elek has appealed the decision but the ethics committee expects a statement from the Petrobras president Pedro Parente.

Menezes added that despite the director’s conduct no administrative irregularities were found in the contract with Deloitte.

Top Content

    The UK: uncertain waves rule Britannia

    he UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    Spain: looking to widen demand

    As Spanish accounting professionals prepare for new audit regulations, the Paul Golden asks what they need to do individually and at firm level to maintain and increase demand for their services.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.