Mexia’s departure from EDP? “We are concerned,” says CMVM president

  • ECO News
  • 25 June 2020

The market supervisor makes it clear that it is only responsible for ensuring that investors are aware of the process involving the group's managers, but he admits concern about the case.

The Portuguese Securities Market Commission (CMVM) cannot intervene in the suitability’s assessment of EDP Group managers – António Mexia and João Manso Neto – in a legal case that could lead to the dismissal of the two CEO. However, CMVM is following the situation with concern.

“We do not anticipate decisions, but naturally we are concerned,” said Gabriela Figueiredo Dias, president of CMVM, in the annual’s presentation report. As to the possible suspension, she underlined that CMVM “has no powers to assess the suitability of the members of the board of directors.”

The Public Prosecutor requested the suspension of EDP’s managers, António Mexia and João Manso Neto. And also a guarantee of two million euros to António Mexia and one million for Manso Neto.

António Mexia’s defence considers the coercive measures proposed by the Public Prosecutor’s Office to be “illegal”. The document of the CEO of Electrica, to which ECO had access, maintains that this request for aggravating the coercive measures is related to facts that, after all, are not new – they are already public since 2018 and had already been clarified and defends that there is no new evidence to support the review.

“EDP is supervised by the CMVM, but not in a prudential manner,” clarified director João Gião about the intervention of the supervisor in the suitability’s assessment of managers. The role of the CMVM is to ensure that investors are properly informed. “Good standing is an aspect that generally impacts the quotation, so it must be communicated to the market as it has been done.”