Ministry creates body to regulate state companies

Monday, July 18, 2011

Brazil's science and technology minister Aloizio Mercadante has created an organization within the ministry to supervise state companies linked to the ministry, and their respective subsidiaries, local press reported.

The new organization was established as a standing committee for corporate governance. One of its tasks will be to inform the minister about the performance of ministry representatives on the boards of state companies.

The science and technology ministry is involved in five state companies: Alcânta Cyclone Space - Binacional (cooperation agreement between Brazil and Ukraine to launch satellites), the technology institute Ceitec, investment agency Finep, nuclear firm Indústrias Nucleares do Brasil, and heavy components firm for nuclear-based power plants Nuclebrás Equipamentos Pesados.

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The committee, which will have to present at least two reports a year, seeks to primarily increase transparency in state companies and subsidiaries linked to the ministry. It also aims to promote interaction with corporate governance entities run by the executive branch.