Marcos Pontes and president of Correios do not confirm privatization of the state-owned company | Brazil

Minister Marcos Pontes and the president of post offices, General Floriano Peixoto, clarified in a hearing in the Chamber of Deputies that the privatization of the company has not started or been approved, at least for now; and that the process should have “the participation of all” if it really occurs. The state company is linked to the MCTIC (Ministry of Science, Technology, Innovation and Communication). In another event, President Jair Bolsonaro reaffirmed his intention to privatize the Post Office.

Photo by Marcos Oliveira / Agência Senado

Pontes said at the hearing that “there is no privatization or privatization procedure to worry about right now.” If privatization is approved, it must be “done in the best possible way, with the participation of all,” said the minister.

“What we have today is to work to make the Post Office sustainable in economic and financial terms. In fact, this is what we have for determination ”, said Pontes. The hearing was being followed mainly by state employees.

Less than an hour later, Bolsonaro said in another event: “we are going to privatize the Post Office”. Still at the hearing, Pontes tried to explain the apparent contradiction: “I am transmitting his information from yesterday”. The minister had questioned the president on the matter the day before, and he said that privatization “is in my head, but it does not mean that it will be now”.

The Ministry of Economy already conducts studies on the sale of the Post Office to the private sector. In June, General Juarez Aparecido da Paula e Cunha was dismissed from the presidency of the state-owned company after criticizing the possible privatization of the company. For Bolsonaro, he acted “as a unionist”.

Márcio Nascimento / ASCOM - MCTIC / Flickr

Marcos Pontes and Jair Bolsonaro

President of the Post Office gives privatization options

During the hearing in the Chamber, the president of Correios reiterated that the privatization was not approved. However, he mentioned two “privatization alternatives”: one is to include the company directly in the PND (National Privatization Plan).

This requires a PEC (Proposed Amendment to the Constitution) and an ordinary bill to be considered by Congress. The STF (Supreme Federal Court) decided that the privatization of any state controlled by the Union must be approved by the Chamber and the Senate.

The second option is to use the PPI (Investment Partnership Program) to define “scenarios” about which privatization model to adopt.

The PPI, linked to the Civil House of the Presidency of the Republic, was created in 2016 “with the purpose of expanding and strengthening the interaction between the State and the private sector”, according to with the official website. The program acts as a managing body for federal public-private partnerships and participates in the National Privatization Council.

With information: Estadão, Twitter.

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