Jorge Andrés Carrillo Confirmed as ISA President Despite Governance, Transparency Complaints

Despite significant legal disputes and controversy surrounding his appointment, Jorge Andrés Carrillo (above, left) has officially been confirmed as the new president of Interconexión Eléctrica S.A. (ISA), majority owned by state petroleum giant Ecopetrol (NYSE: EC).  On January 24, the Superintendence of Companies confirmed the validity of Carrillo’s appointment, officially making him the company’s legal representative.

Through a press release, ISA informed the appointment was also confirmed by the Chamber of Commerce of Medellín for Antioquia on January 10, despite opposition from an investor who filed a complaint against the registration. “Based on the decisions from the Chamber of Commerce of Medellín and the Superintendence of Companies, as of today, the appointment of Jorge Andrés Carrillo as ISA’s legal representative is officially registered,” the communication stated.

Carrillo’s appointment, made on August 15, 2024, was not unanimous and sparked significant polarization within the board. Five members of the board supported his appointment, while the other four opposed having Carrillo lead the energy company. This division has continued to fuel the controversy surrounding his election.

ISA’s board of directors have nine members, of whom only two are not independent members of the company: Ricardo Roa Barragán (president of Ecopetrol) and David Alfredo Riaño (vice president of Low Emissions Solutions at Ecopetrol).

Critics of Carrillo’s appointment argued there was a lack of transparency in the selection process. The discontent over his election was significant enough to reach the Council of State, the process lacked clarity due to missing records and documents from the meeting in which the decision was made.

In mid-December, local newspaper El Tiempo revealed that the Council of State requested ISA’s board of directors to submit the procedures related to Carrillo’s appointment. The court demanded verification of the registration with the Chamber of Commerce of Medellín. “At this point, it must be indicated whether the individual in question has effectively assumed the position and whether it is producing legal effects,” the tribunal stated.

Further concerns were raised by Empresas Públicas de Medellín (EPM), which holds 8.8% of ISA’s shares. EPM expressed unease after learning that Carrillo had received one of the lowest scores in the selection process for the role. Additionally, key testimonies that highlighted negative experiences, especially during his tenure as the general manager of EPM, were allegedly overlooked. “[EPM] reaffirms its commitment to the defense of corporate governance,” highlighted their official press release.

While Carrillo’s appointment has now been legally confirmed, the dispute over his election is far from resolved, with new revelations and various parties questioning the transparency and integrity of the process and Carrillo’s performance.

Carlos Raúl Yepes, former president of Bancolombia, last Thursday, February 13, sent his resignation letter to the board of directors arguing his disagreement with the election of Carrillo as ISA administrator.

“I declare myself against the flagrant and recurring violation of the by-laws, regulations and internal agreements, legal provisions and the code of good corporate governance in the selection and election of Jorge Andrés Carrillo Cardoso as president of ISA,” explained Yepes to El Tiempo as he resigned from being a member of the board.

Headline photo: Jorge Andrés Carrillo (Photo: ISA)