Investigation will find out hiring a law firm for R$ 15 million in Pedra Branca – News of Brazil
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Paulo Silva
Policy Editor
The public prosecutor Fabiano da Silveira Castanho, from the Public Prosecutor’s Office of Amapá (MP-AP), ordered the initiation of a preparatory procedure for a civil inquiry, with a view to verifying the legality of the hiring, by the City Hall of Pedra Branca do Amapari, of an office of advocacy (Abrão Advogados Associados) for the amount of R$ 15 million, with waiver of bidding, for the taking of administrative and judicial measures for the receipt of amounts resulting from CFEM (Financial Compensation for the Exploitation of Mineral Resources).
Fabiano Castanho asked the city hall for a full copy of the entire administrative process for hiring the Advocacy Office Araújo Abrão Advogados Associados, as well as a full copy of the administrative or judicial processes filed by the firm on behalf of the municipality of Pedra Branca do Amapari, whether in view of the Union, the National Mining Agency, the state of Amapá, or any other natural or legal entity, entity or person. From the National Mining Agency (AMN), the promoter requested a copy of the entirety of the administrative procedures initiated ex officio or at the request (from the municipality of Pedra Branca do Amapari, from a legal representative or from the law firm Araújo Abrão Advogados Associados) that have as their object the receipt of amounts resulting from the Financial Compensation for the Exploitation of Mineral Resources.
The public prosecutor considered the publication, in the city hall’s official press, informing not only the opening of additional credit of R$ 80 million, resulting from the receipt of funds from CFEM, but also the budget forecast for payment to the law firm in the amount of BRL 15 million.
According to Fabiano Castanho, the firm was hired through a bidding process, despite the apparent absence of great complexity and uniqueness of the contracted object. According to him, the fixed payment percentage of 15% of contractual legal fees appears, in principle, exorbitant and unreasonable, either in view of an amount to be received of approximately R$ 80 million, or in view of the apparent lack of complexity of the case (which, according to what is known, ended in a few months), either in view of the size of the contracting municipality, or in view of the lack of proportional gradation of fees depending on merely administrative action or the need to take long-term legal measures , circumstances that can demonstrate that the hiring under analysis caused very serious damage to the treasury of Pedra Branca do Amapari, in addition to administrative impropriety by its actors.
Castanho also considered that there is a need to verify the intellectual nature of the work to be provided, the difficulty and/or impossibility of the municipality itself succeeding in receiving the amounts through administrative means, the notorious specialization of the contracted office, as well as the unfeasibility of competition or competition, in view of the numerous law firms, throughout Brazil, specializing in tax, mining, environmental and administrative law, considering also that there is a need to monitor whether the funds obtained with CFEM are being applied according to established links in law.
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