Securities regulator launches two inspections into alleged irregularities at Telebras

22 Feb 2010

Brazil’s securities regulator CVM has launched two separate investigations into Brazil’s former telecoms monopoly Telecomunicacoes Brasileiras (Telebras), BNamericas reports citing an unconfirmed report on the Agencia Estado newswire. The first investigation centres on the alleged misuse of classified information in transactions involving Telebras’ stock in 2007 and 2008. The second case meanwhile, focuses on whether or not there were any wrongdoings in the government’s recent digital inclusion announcement, which is designed to provide national broadband coverage – possibly with the help of Telebras.

According to TeleGeography’s GlobalCOmms Database, in August 2009 the Brazilian government began considering a plan to restructure and reactivate former state-run telecoms services provider Telebras. Under proposals being formulated by the planning ministry, the former telecoms monopoly, which was sold to private investors in the late 1990s, could use the infrastructure of domestic oil giant Petrobras and state-run power company Furnas Centrais Eletricas (Furnas) to manage a broadband network linking Brasilia, Sao Paulo, Rio de Janeiro and Belo Horizonte. The state’s plan was activated following recent glitches in the local broadband network of Telefonica Telesp which revived discussion on resuscitating Telebras. The government could use the network to create its own intranet service, and the planning ministry estimates cost savings of BRL150 million (USD82 million) per annum if the project is implemented.