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Brazil

Lewandowski prohibits government from privatizing state without congressional authorization

THE MINISTER OF THE STF GAVE A LIMITING DECISION (PROVISIONAL) IN AN ACTION THAT CHOOSES PRIVATIZATIONS WITHOUT A GUARANTEE OF THE LEGISLATIVE. CURRENTLY, THE GOVERNMENT TRIES TO APPROVE THE PRIVATIZATION OF ELETROBRAS IN THE CONGRESS.

Minister Ricardo Lewandowski of the Supreme Federal Court (STF) forbade the government from privatizing state-owned companies without prior authorization from Congress.

In a preliminary (provisional) decision, the minister responded to a request from the National Federation of Personnel Associations of the Caixa Econômica Federal (Fenae) and the National Confederation of Workers of the Financial Branch (Contraf), the latter linked to the Single Central of the Workers (CUT).

In the action, the entities questioned the constitutionality of sections of a 2016 law that determines how federal, state and municipal executive powers can manage public companies. Therefore, Lewandowski's limitation also applies to public companies of the Union, states or municipalities.

The minister considered that, for each state, there must be a specific law, approved by the Legislative, to sell more than 50% of the shares to the private initiative. For him, each state needs a law to be created and another to be extinguished.

In the decision, Lewandowski cites a tendency of desestatizaciones that can, according to him, cause "irreparable damages" to the country if it is not conducted in accordance with the Constitution.

"There is, in effect, a growing vagueness of democratization that is taking shape at all levels of the Federation, which, if carried out without strict observance of the provisions of the Constitution, may bring irreparable damage to the country," wrote.

Lewandowski recalled that the Constitution determines that the disposals of public goods must be made through a tender that ensures "equal conditions for all competitors."

The liminal, uttered individually, may still be reversed by the plenary of the STF, consisting of 11 ministers, but there is no forecast of when this may occur. The date of the trial depends on the decision of the president of the Court, Carmen Lúcia.

Lewandowski still wrote that, when the discussion goes to the plenary, the ministers will also have to analyze if the law that allows the privatization can also be applied to the companies that provide public services or only to those that exercise economic activity.

PRIVATIZATION OF ELETROBRAS

One of the main objectives of the Michel Temer government for the second half of this mandate is through the Congress of the privatization of Eletrobras and   subsidiaries of the company  .

The Planalto Palace sent two projects to the Chamber. With rules for the privatization of Eletrobras   and the  other for the privatization of the subsidiaries.

With the privatization of Eletrobras, the government intends to fatten the National Treasury in 2018. The forecast is that they will be raised from R $ 12.2 billion with privatization.

By the text, the privatization will take place through the increase of the company's capital stock, which will offer new shares in the stock exchange and, with this, the participation of the current shareholders will be diluted.

• RICARDO LEWANDOWSKI
         
• FEDERAL COURT OF JUSTICE

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font writing https://g1.globo.com/politica/noticia/lewandowski-proibe-gobierno-de-privatizar-estatales-sem-autorizacion-de-congress