PT deputy raises pressure against privatizations in SP – 03/17/2023 – Panel SA

State deputy Emídio de Souza (PT-SP) increased pressure on the TCE-SP (State Court of Auditors) against the intention of Governor Tarcísio de Freitas to sell Emae (Metropolitan Water and Energy Company).

In a letter sent this Thursday (16th) to Attorney General Thiago Pinheiro Lima, from the Public Ministry of Accounts in São Paulo, the deputy asked for notes or measures regarding the electronic auction initiated by the government for the hiring of consultants who will carry out studies on the privatization of company. The auction is scheduled for Tuesday (21).

Emídio says that Emae has a range of assets in highly valued areas of the state and that “strategically intertwine water control with the generation of electricity”. The company also operates the Pinheiros channel and reservoirs located in Greater São Paulo.

The intention to privatize Emae was announced two weeks ago by the governor in a package that has Sabesp as the crown jewel. Internally, it is discussed that the privatization of Emae will be a calculation to see the size of the strength of the sale of Sabesp.

At the beginning of the year, Tarcísio said that he intends to complete the privatization of Sabesp by 2024. In addition, he stated that he considers the model made with Eletrobras to be good, privatized last year by the federal government through a share offering that diluted the control of company on the Stock Exchange —currently, the government of São Paulo controls 50.3% of the water company’s share capital.

The governor claims, however, that he may withdraw from the process if the tariff becomes more expensive and management fails to achieve the desired level of efficiency with the sale of the company.

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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