Lula vetoes plan to exchange leniency for works – 05/14/2023 – Panel SA

The renegotiation of leniency agreements with companies investigated by Lava Jato will not prosper in the Lula government. The order given by the president is for the CGU (Comptroller General of the Union) to create new rules only for future agreements.

About the past, it is up to companies to deal with it. That was the command given by the president, according to people close to him.

The decision was taken when contractors were discussing with the chief minister of the Civil House, Rui Costa, a plan to renegotiate their agreements.

The initial plan was to exchange amounts to be paid to the Union for works chosen by the government.

The measure would allow the execution of a schedule of priority projects of the Lula administration and, at the same time, would guarantee the builders a portfolio of new contracts — something that would allow them to knock on the doors of banks in search of lines of credit. Today, they suffer restrictions because of their financial difficulties.

In technical analysis, this exit proved to be unfeasible. One of the problems is that the Union could not negotiate third-party resources, giving up receiving amounts that are also paid to injured state-owned companies, such as Petrobras.

With Diego Felix

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