Unlock the Editor’s Digest at no cost
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
Santander has scrapped a plan to nominate a Brazilian government as its chief accountant, almost 4 months after he was positioned underneath police investigation for alleged fraud whereas working at Brazil’s largest financial institution.
Alexsandro Broedel Lopes joined Santander in October and was attributable to change into its group chief accounting officer within the coming months — a place that might have made him a member of its senior administration staff.
However in a memo to senior managers on Wednesday seen by the Monetary Occasions, the financial institution mentioned that Manuel Preto, deputy chief government of its Portuguese enterprise, would as an alternative tackle the chief accounting function on the finish of July.
The choice to drop Broedel’s appointment comes after the FT revealed in February that he was underneath prison investigation in São Paulo for alleged misappropriation of funds whereas working at Itaú, Brazil’s largest financial institution by whole property.
Santander didn’t give a purpose for appointing Preto as an alternative of Broedel. An individual briefed on the matter mentioned Broedel remained a Santander worker.
Itaú has accused Broedel, its former chief monetary officer, of siphoning funds from the financial institution by way of an association with an exterior marketing consultant who he had employed on behalf of the lender. São Paulo prosecutors determined a police investigation into the chief was wanted to “decide the information”, the FT beforehand reported.
Santander’s board of administrators agreed to Broedel’s appointment as group chief accounting officer final June, earlier than the allegations got here to gentle.
Broedel had obtained the required approvals from regulators to take up the senior put up at Santander, the financial institution beforehand mentioned. This included passing the European Central Financial institution’s “match and correct” take a look at for senior managers.
After the prison investigation into Broedel was first made public, Santander mentioned Broedel was a “extremely regarded senior government” who was “attributable to take over as CAO later this 12 months”. It added that it was “monitoring any developments”.
Broedel has not been charged with any crime, and the result of the police investigation is just not but recognized.
Santander and a spokesperson for Broedel declined to touch upon Wednesday’s memo.
Broedel’s consultant beforehand described the allegations towards him as “unfounded and meaningless”, including that he “has all the time carried out himself ethically and transparently in all his actions all through his 12 years at [Itaú]”.
