Brazilian electricity sector: what is a conflict of interest?

Brazilian electricity sector: what is a conflict of interest?

3 emblematic examples.

* Itaipu

The largest hydro power generator in the country is donating USD 130 Million for a University in the Paraná state. Isn’t Itaipu’s goal to produce competitive electricity for the benefit of Brazilians?

* Commission for the buyer

Invariably when I provide consultancy to corporate and institutional clients, involving (also) power contracting, the first question I receive from traders is whether I wish to receive a commission. Of course, I inform them that I should not receive any commission. It would be unethical. Absurd!

* Public servants as board members to private companies

Two weeks ago the news blatantly showed the participation (“professionally”) of high-ranking government officials in a large private company as “board members”. Absurd from the standpoint of governance and transparency.

These emblematic cases remind me of the great actress Maggie Smith, from the series Down Town Abby, who played an English noblewoman of the time. When asked if she could attend a meeting next weekend, she replied “what’s a weekend?”. In Brazil, we are used to accepting everything. There are no conflicts of interest! Honesty and upright principles are definitely not on our radar!