Opposition tries to block privatization of Sabesp this Wednesday – 11/07/2023 – Market

State deputies opposing Governor Tarcísio de Freitas (Republicans) will file this Wednesday (8) a writ of mandamus with the TJ-SP to block the processing of the Sabesp privatization bill.

Led by deputy Emidio de Souza (PT), the collective action questions an alleged “unconstitutionality defect” in the proposal, which was sent to Alesp by the Government of São Paulo as a common bill. For the opposition, the privatization of the company needs to be done via PEC (Proposed Amendment to the Constitution).

The document was supported by 19 parliamentarians from PT, PSOL and PCdoB.

The draft of the writ of mandamus, to which the Sheet had access, is based on the argument that the state Constitution provides that water and sewage services will be provided by a public sanitation company. In this logic, privatization would require changing the constitutional text, which requires votes from three-fifths of the House — instead of a simple majority in the case of a PL.

The interpretation is based on article 216 of the São Paulo Constitution, which states that the government will establish a multi-annual sanitation plan establishing the guidelines and programs for actions in this field.

“The State will ensure conditions for the correct operation, necessary expansion and efficient administration of basic sanitation services provided by a concessionaire under its shareholding control”, says the second paragraph.

The Government of SP, however, does not see the section as a constitutional impediment to the privatization of sanitation companies, only the determination that the state provides a good service if it is responsible for the operation.

The opposition sees it as unconstitutional.

“The highlighted norm stipulates that the State has the responsibility to ensure that basic sanitation services, provided by a concessionary company under its shareholding control and not under the shareholding control of third parties, are carried out appropriately, allowing their expansion when necessary and ensuring effective management”, says an excerpt from the request.

As a result, the document requests the immediate suspension of the bill’s processing, in addition to a statement from the Public Prosecutor’s Office.

The writ of mandamus comes amid an attempt by the governor’s allies to speed up the legislative process. As published by the Panel column this Tuesday (7), Tarcísio’s base at Alesp is working to speed up the processing of Sabesp’s privatization project.

The president of Alesp, André do Prado (PL), called the so-called congress of committees, which brings together several thematic committees of the Assembly to deliberate on the project quickly, instead of letting it be processed individually in each of them.