Colombia’s incoming finance minister announced changes in state-run oil company Ecopetrol after the outgoing government tried to prevent the replacement of directors.
The far-right government of outgoing President Ivan Duque tried to maintain control over Ecopetrol by using its position as majority shareholder to extend the term of the board of directors.
The shareholders additionally imposed a one-term limit on newly appointed directors of Colombia’s largest company, whose chiefs previously could stay on indefinitely.
Petro and finance minister warn Ecopetrol
The vote angered President-elect Gustavo Petro, who said “don’t challenge us” in a Tweet directed at Ecopetrol on Wednesday.
Incoming Finance Minister José Antonio Ocampo tweeted that “we will make changes in the board of directors,” despite the fact that “this has been complicated tremendously by these decisions to try to continue policies after the current government.”
We will have to call an assembly and change the statutes to be able to make the decisions that would correspond to the incoming government and that — due to a decision that makes no sense — they decided not to allow.
Incoming Finance Minister José Antonio Ocampo
Ecopetrol’s decision to change its rules of corporate government followed the announcement of the incoming Environment Minister Susana Muhammad to “close the door” on fracking in Colombia.
The oil company defended its decision as a means to protect its corporate policies from “politicization.”
Ocampo said the decision was an “attack on democracy.”
Ecopetrol concerned about “green energy” proposals?
While on campaign, Petro additionally vowed to end oil exploration and prioritize the exploration of environmentally friendly energy alternatives.
Ecopetrol’s annual revenue contributes 1.2% to Colombia’s GDP and has long been controlled by mainly Conservative Party allies of the government.
The company has long been embroiled in scandals over executive’s ties to paramilitary organizations, and fraud and misconduct by daughter companies.
The company works together with foreign oil companies like American oil from OXY.
