Post and Telebras go into privatization process – Brazil

Two decrees signed by President Jair Bolsonaro made the process of privatization of the Post and Telebras: the two state companies entered the PPI (Investment Partnership Program), which will carry out studies to assess how they can be transferred to the private sector. A possible sale will require authorization from the House and Senate.

post offices

The decree 10,066 / 2019, published in the Official Gazette on Wednesday (16), qualifies the Post Office under the PPI. In turn, the decree 10,667 does the same for Telebras.

For both state-owned companies, the objective is “to make it possible to carry out studies and evaluate alternatives for partnership with the private sector and to propose efficiency gains and results for the company, with a view to ensuring its economic and financial sustainability”.

In both cases, an interministerial committee will be formed with members of the Civil House, Ministry of Economy and MCTIC (Ministry of Science, Technology, Innovations and Communications). BNDES will be invited to participate, as will the state companies themselves.

The committee may “request technical support from other bodies and entities”. The studies must be carried out and evaluated in 180 days; the period can be extended for another 180 days.

Privatization of the post office should be endorsed by Congress

So, if the government decides to sell the Post Office or Telebras, the case will pass to Congress. The privatization of any state controlled by the Union must be approved by the House and Senate, according to a decision by the STF (Supreme Federal Court).

Therefore, the privatization of Correios and Telebras should take a while. Martha Seillier, PPI special secretary, believes that this should only happen after 2021. Before that, the government must have already sold other state-owned companies, such as Eletrobras, Casa da Moeda, Serpro (Federal Data Processing Service) and Dataprev (Social Security Technology and Information Company).

Correios and Telebras are linked to MCTIC. Minister Marcos Pontes tells the Braziliense Mail that it is not against selling to the private sector, and that the PPI will help improve the governance and management of the two state companies. He says that Floriano Peixoto, president of Correios, “will continue to strengthen the company; the stronger it is, the better, even in the case of privatization ”.

With information: TeleSynthesis.

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