EDP – Energias de Portugal, which has China Three Gorges as its main shareholder, has been forced to replace its CEO, António Mexia, and another executive, who face corruption charges.
Mexia´s immediate suspension as the energy company´s CEO was decreed this Monday by judge Carlos Alexandre, and he is to be replaced on an interim basis by EDP’s current CFO, Miguel Stilwell d’Andrade, according to the company.
The judge also decreed the suspension of João Manso Neto, CEO of EDP Renováveis, in the scope of the investigation into dealings with previous Governments.
The two executives are also prevented from any management and administration position in EDP companies, or controlled by the group, either in Portugal or abroad.
Mexia, the local press adds, is prohibited from entering all EDP facilities, will have to hand over his passport and is prohibited from traveling abroad.
The Public Prosecutor’s Office asked for the suspension of Mexia and Manso Neto on June 5, under accusations of “co-authorship” in the “practice of four crimes of active corruption and one crime of economic participation in business”.
About the suspension of Mexia and Manso Neto from their current positions in the EDP group, the company previously responded in a statement considering the request “illegal” and said that it would have “no effect from the point of view of EDP management”.
The case is in the final stage of investigation at the Central Department of Investigation and Criminal Action (DCIAP) and the two prosecutors in charge are also preparing accusations against a board member of REN, João Conceição, for two crimes of passive corruption, according to news site Observador. REN is owned by China State Grid.
This executive was part of the team of former Minister of Economy Manuel Pinho during the period in which decisions were taken regarding the extension of EDP dams concessions and the compensations contracts with the Government.
Rui Teixeira, executive director of EDP Renováveis, will replace Manso Neto as the company´s CEO, according to a statement.
EDP Renováveis said in a statement that “in the context of an ongoing legal proceeding related to the activity of EDP – Energias de Portugal, which holds 82,6% of EDPR’s capital, EDPR’s Chairman of the Board, António Mexia, and the Vice-President and CEO, João Manso Neto, were notified yesterday about the application of the coercive measure to suspend the exercise of functions in management or administration in companies of the EDP Group, the process being kept under investigation”.
António Mexia’s term ends at the end of this year, so the coercive measure applied by the Public Prosecutor’s Office, which has a limit of 8 months, should translate into a definitive departure from the historic CEO of EDP.
The investigation began eight years ago, and both executives were constituted as defendants three years ago, in June 2017.
Photo: EDP headquarters, Lisbon
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