Henrique Granadeiro today resigned from the board of Portugal Telecom, wanting to defend the "interests of shareholders," and wrote that he always had acted "in the best interest of PT, its employees and all its shareholders."
The joint Chief Executive and Chairman of Portugal Telecom resigned over the disasterous investment in Espírito Santo Group offshoot Rioforte where PT has lost up to €900 million.
Granadeiro said he did not resign immediately as he wanted to engage in "building a solution that best defend the interests of the affected shareholders and to relaunch the process of merging PT with Oi, now in its final phase."
In his letter of resignation, the manager wrote that he was "surprised by the situation of widespread breaches of Banco Espírito Santo obligations to PT due to the implosion of the Espírito Santo Group," although perhaps not as surpised as PT shareholders and some board members when they discovered that PT had tied up €850 million in a property and leisure company owned by Espírito Santo Group.
The manager in fact resigned, "following the recommendation of the Executive Committee of Portugal Telecom" and before the annual general meeting.
"I am sure that the external and independent audit already ordered by the board of directors will clarify the processes and causes of the incident and will demonstrate that I always acted in the best interest of PT, of its employees and all shareholders."
The audit can not be independent if commissioned by the board, and may well be designed to exonerate Granadeiro to enable him to keep his pay off.
