Itaú Unibanco detected the alleged conflict of interest of its former financial director Alexsandro Broedel after the executive left the bank, according to Broadcast from sources who requested anonymity, due to the confidentiality of the investigations.
The procedure revealed, according to the information, that he had omitted from the bank the fact that he had a partnership with accounting professor Eliseu Martins, whose services he authorized Itaú to hire.
Broedel left Itaú in July, heading to a position in the management of Grupo Santander, in Spain. His departure was “sudden”, according to sources, and shortly afterwards, the bank’s management became aware that even though he served as financial director, he had issued accounting opinions to other companies.
Based on this information, there was an internal investigation, through which Itaú detected that Broedel was a partner of Eliseu Martins in a company. This company would have received transfers from another, contracted by the bank and of which Martins is a partner with one of his sons, in amounts compatible with those paid by Itaú for services whose hiring was authorized by Broedel between the years 2019 and 2024.
The bank’s internal governance subjects all executives to an annual questionnaire which, among other things, asks whether they maintain partnerships with the institution’s suppliers. If so, Itaú’s rules determine that executives cannot decide on the bank’s relationship with its partners.
Still according to sources, the internal structure determines that the hiring of suppliers goes through a centralized purchasing area, which carries out competitive processes in the market. The exceptions are “very personal” services, such as hiring specific reviewers. This is the case of Martins, professor at the University of São Paulo (USP) and considered one of the greatest accounting experts in the country.
Martins left the bank’s supplier team after the investigation. Broadcast found that the bank informed the Central Bank about the facts in October, as well as the Securities and Exchange Commission (CVM).
If both bodies investigate the case and find those involved guilty, they will be disqualified from working in companies regulated by both bodies.
The investigation led Itaú to ask the independent auditor, PwC, to re-evaluate the balance sheets for the period. No inconsistencies were found, and the bank stated, in a note, that there is no impact on the results.
The amounts involved in the alleged conflict of interest had already been accounted for and are considered small given the size of the balance sheet.
When contacted, Broedel said through an advisor that Itaú’s accusations are unfounded, and that Martins had been a supplier to Itaú for decades, since before the executive joined the board.
He also stated that “it is deeply strange” that Itaú denounces the alleged improper conduct after he left the bank to take on a global position at one of its main competitors, and that it will take the appropriate legal measures.
Eliseu Martins did not comment until the publication of this note.
