Ecopetrol Board Keeps Roa Despite Legal Pressure

The board of Colombia’s largest company has voted to retain its embattled president, keeping Ricardo Roa at the helm of Ecopetrol despite two pending criminal charges and mounting pressure from the company’s own labor union. The Rio Times, the Latin American financial news outlet, examines what the decision means for the state oil giant’s governance, its investors, and the growing legal risks surrounding the Ecopetrol board and its leadership.

How the Ecopetrol Board Reached Its Decision

The vote came after nearly 24 hours of deliberation split across two sessions on March 20 and March 25. Six of the nine board members sided with retention, invoking the presumption of innocence and noting that an indictment does not constitute a conviction. The government, which controls seven of nine seats through its 85.5% ownership stake, aligned behind Roa.

President Petro reinforced the decision publicly, defending Roa as a trusted figure and warning the labor union against allying with opposition forces. Roa managed Petro’s 2022 presidential campaign and faces charges for influence peddling and for allegedly exceeding campaign spending limits, with a second hearing scheduled for April 8.

Union Pressure and Strike Threats

The Unión Sindical Obrera, which represents roughly one-third of Ecopetrol‘s workforce and holds a board seat for the first time, had demanded Roa’s removal. With the vote going against them, the union — historically an ally of Petro’s government — announced it may call a strike, opening an unusual rift between the administration and organized labor.

A work stoppage at Ecopetrol would carry significant economic consequences. The company produces over 60% of Colombia’s hydrocarbons and contributes roughly 10% of the national budget through taxes and dividends.

Legal Red Flags From U.S. Law Firms

The board made its decision despite internal warnings. A report from U.S. firm Miller & Chevalier, commissioned by Ecopetrol in 2024, documented inconsistencies in Roa’s account of a real estate transaction linked to the influence-peddling charge. A second firm, Covington & Burling, requested documents from Roa that were never provided.

Ecopetrol is listed on both the Colombian exchange and the New York Stock Exchange, subjecting it to SEC oversight under the Foreign Corrupt Practices Act. Reports indicate the SEC has opened an inquiry into the company, adding a layer of U.S. regulatory risk to the governance dispute.

Market Reaction and Investor Exposure

Ecopetrol shares fell nearly 5% on the Colombian exchange during the board session, moving against the trend for global oil stocks, which rallied on rising crude prices tied to Gulf tensions. Among minority shareholders, Colombia’s private pension fund managers — Porvenir, Protección, Colfondos, and Skandia — hold an 11.5% stake, exposing millions of Colombians’ retirement savings to the company’s reputational risk.

Legal analysts warn the board itself faces liability. Corporate governance experts note that directors could be held financially responsible if their decision is later found to have harmed the company, given the documented red flags from two U.S. law firms.

What Comes Next for Ecopetrol

The calendar is closing in. A shareholder assembly takes place this Friday, the union’s strike threat remains active, and Roa faces his second criminal hearing on April 8. The pension fund association Asofondos has already written to the board demanding a risk assessment and a continuity plan for Ecopetrol’s operations that Roa has not submitted.

For international investors, the episode illustrates a recurring tension in Colombia’s state-owned enterprises: a government majority that prioritizes political loyalty over corporate governance, tested against the scrutiny of U.S. regulators and markets that demand transparency. The board has bought Roa time, but the legal clock has not stopped.