The Public Ministry at the Federal Court of Auditors (TCU) filed a representation this Monday that questions the appointment of Otto Lobo to preside over the Securities and Exchange Commission (CVM), according to the body’s document.
The allegation by TCU Deputy Attorney General Lucas Furtado, citing reports published in the press, was that Lobo had made favorable decisions to Banco Master, a banking institution that is at the center of a liquidation process by the Central Bank.
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When contacted, the CVM did not immediately respond to a request for comment.
Lobo had his name nominated by President Luiz Inácio Lula da Silva to preside over the municipality. The nomination was sent to the Senate last week.
He was chosen to replace João Pedro Barroso do Nascimento, who resigned from his position in July last year. Lobo, the authority’s oldest director until then, had already been appointed interim president of the CVM at the time.
The representation of the deputy attorney general, if accepted by the TCU, would lead to an investigation into the issues relating to the nominee to preside over the CVM, which could, in the end, result in a formal alert to the Senate about the chosen name.
