TCE puts a brake on Tarcísio’s plans to privatize Emae – 03/27/2023 – Panel SA

The TCE-SP (São Paulo State Court of Auditors) halted this Monday (27) the start of the privatization process of Emae (Metropolitan Water and Energy Company), announced by Governor Tarcísio de Freitas at the turn of the month. The opening of the envelopes for hiring technicians who will carry out the studies was scheduled for Tuesday (28).

In the dispatch, counselor Renato Martins Costa states that the government could not open a tender for hiring specialized technical services. The understanding is that the contractual obligations defined in the notice exceed the criteria established in the Trading Law.

Among the points defended by the adviser to suspend the trading session, he also claims that the Tarcísio management would make a judgment of the proposals based on prices that are not available on the market. The São Paulo government would use the lowest price criterion.

The opening of the envelopes was initially scheduled for last Tuesday (21), but the government opted to postpone the process by a week to receive more offers.

The pressure to curb Tarcísio’s intentions to privatize Emae and Sabesp is led by state deputy Emídio de Souza (PT-SP). Two weeks ago, he had sent an official letter to the TCE asking for a statement from the body on the Emae public notice.

For the deputy, 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.

Last week, the PT relaunched the Parliamentary Front Against Sabesp’s Privatization in the Legislative Assembly of SP. In all, 24 deputies from six parties joined the governor’s opposition collegiate.

“I sent an official letter demanding the court’s position and they complied, showing that the auction could cause damage to the legal process. Fleeing the laws to privatize one of the main companies in the country’s water and energy sector is absurd”, said Emídio de Souza.

In a note, the Secretariat for Partnerships in Investments said that it “will provide all the information requested by the TCE counselor and, in partnership with the State Attorney General, will adopt the necessary measures for the continuation of the project”.

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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