Cemig: Zema delivers project to accelerate privatization – 08/22/2023 – Market

The government of Minas Gerais filed a proposal with the State Legislative Assembly to speed up the process of privatization of public companies, as it could facilitate the privatization of energy companies Cemig and sanitation companies Copasa.

According to a statement released on Monday (21), the PEC (Proposal for Amendment to the Constitution) of the government of Romeu Zema (Novo) foresees reducing the number of votes necessary for the approval of a state law authorizing changes in the corporate structure or division of a company of mixed economy and public company.

Today, it is necessary that three fifths of the deputies vote in favor of the amendments — the PEC proposes a simple quorum.

In addition, the bill releases the state from holding a popular referendum on privatizations.

“This consultation, in addition to being expensive and burdening the public authorities, is not effective, after all, regulated sectors, such as energy and sanitation, have specific rules and laws, which depend on a deep technical assessment in decision-making,” he said in a statement. the state government when justifying the proposal.

The government’s action at the local assembly was disclosed by Cemig and Copasa in communications to the CVM (Securities and Exchange Commission). The texts do not, however, bring specific comments about the privatization processes of these companies.

The PEC will be analyzed by the state legislature and, depending on the progress of feasibility studies, the government of Minas Gerais will be able to forward privatization proposals for consideration by the State Assembly in the coming months.

“The intention is for all processes to be completed by 2026,” the government said.