Municipalities study going to the STF on sanitation – 07/12/2023 – Market

The federal government’s agreement with the Senate to prevent the overthrow of part of the two decrees that change the rules of the Sanitation Framework has displeased municipal companies in the sector, which are considering going to the STF (Federal Supreme Court) against the changes.

The point that displeased provides that municipalities that directly provide the sanitation service —without a state endorsement— will need to have the activity provided for in a law of the respective federative unit to continue with the activity.

“It is absurd, we will not accept it. All measures are on the table. An ADI [Ação Direta de Inconstitucionalidade] in the STF, whatever is possible”, said the executive secretary of Assemae (National Association of Municipal Sanitation Services).

Today, there are around 1,700 municipalities that directly operate sanitation. This means that some entity linked to the city hall provides the service. With the change, all of them will need a state authorization to continue the activity.

“A municipality like Campinas, which is a benchmark for sanitation in the country and has operated its service for almost 50 years with one of the best national indicators, will suddenly have to submit the continuity of its operation [a uma lei estadual]”, assessed Manuelito Magalhães, president of Sanasa —the company that operates sanitation in the city.

“This brings legal uncertainty from the point of view of funding resources already in progress. It is a setback sponsored by the federal government,” he added.

The alteration was negotiated with the Senate because the parliamentarians wanted to completely overturn the stretch allowing direct provision by municipalities, according to reports gathered by the Sheet.

The agreement signed this Tuesday (11) by the government of President Luiz Inácio Lula da Silva (PT) with Senate leaders around a new sanitation decree prevented the vote on the PDL (Legislative Decree Project) from entering the Senate agenda, which , if approved, would overturn changes drawn up by the Executive in April in the Sanitation Framework —which received approval from parliamentarians in 2020.

The proposal for a new decree removes the loophole that dispenses with bidding for state-owned sanitation companies, as anticipated by the Sheet. This was one of the most controversial points of the acts published by President Lula (PT) and which were questioned by Congress.

In May, the plenary of the Chamber approved the overthrow of parts of the presidential decrees. The majority of deputies voted to stop the loophole for state companies to provide services without bidding, the loosening of the rules for state companies to prove technical and financial capacity and the possibility for companies to regularize precarious contracts.

The main criticism of parliamentarians in relation to Lula’s decrees was that the president used the text to create new rules, which should be approved by Congress. Therefore, the decrees would not only have regulated the sanitation sector.

The Planalto Palace and the Ministry of Cities closed a text on the eve of the meeting with senators. Lula met with Padilha and with the leader of the government in the Senate, Jaques Wagner (PT-BA), this Monday afternoon (10) to give approval to the negotiation.

The Sanitation Framework set for 2033 the goal of reaching the so-called universalization of the service — in this case, providing water for 99% of the population and sewage collection and treatment for 90%.