Post, Telebras, Serpro and more state-owned companies go into privatization – Brazil

The Bolsonaro government announced on Wednesday (21) the 9 state-owned companies that will enter the privatization process: this includes ECT (Brazilian Post and Telegraph Company), Telebras, Serpro (Federal Data Processing Service) and Dataprev (Social Security Technology and Information Company). The sale of these companies requires the approval of the Chamber and the Senate.

Photo: Post Office / Disclosure

The Ministry of Economy prepared a study with justifications for privatizing the Post Office, according to the G1, and mentions cases of corruption, political interference in management and constant strikes. He also cites examples of inefficiency, such as the “high loss rate” and the delay in reimbursing lost products.

President Jair Bolsonaro recognizes, however, that the process should take: “the privatization of the Post Office also passes [ainda em 2019], according to the Supreme Court’s decision, by the Chamber… it is a long process, it is not fast ”.

This year, the majority of the ministers of the STF (Supreme Federal Court) decided that the privatization of any state controlled by the Union must first be approved by the Chamber and the Senate. In other words, the federal government will need Congressional approval.

Rumors say that Amazon and Alibaba are interested in buying the Post Office to expand their logistics operations. ECT said earlier that the sale to the private sector “will be a loss for both the country and society.”

9 state-owned companies go into privatization process

Bolsonaro clarifies that state-owned companies will not be privatized right away: first, they will enter the PPI (Investment Partnership Program) to decide which privatization model to adopt. PPI acts as a managing body for federal public-private partnerships, in addition to participating in the National Privatization Council.

In addition, the BNDES (National Bank for Economic and Social Development) can offer alternatives to privatization, such as merging, reorganizing or even closing state-owned companies. Therefore, it is not yet known when the privatizations will be completed.

Other companies will also enter in this privatization process. “We think we will surprise, there are great people who think they will not be privatized and will go under the knife,” said Minister Paulo Guedes on Tuesday (20).

This is the list of 9 state companies that will enter the privatization plan:

  • post offices
  • Telebras
  • Serpro (Federal Data Processing Service)
  • Dataprev (Social Security Information and Technology Company)
  • Ceitec (Center of Excellence in Advanced Electronic Technology)
  • Codesp (São Paulo State Dock Company)
  • Ceagesp (Companhia de Entrepostos e Armazéns Gerais de São Paulo)
  • Emgea (Asset Management Company)
  • ABGF (Brazilian Guarantee and Guarantee Fund Management Agency)

In 2019, 8 state-owned companies have already been privatized or liquidated. The federal government still has control from 132 companies, of which 86 are subsidiaries of Petrobras, Eletrobras, Banco do Brasil, Caixa, Correios and BNDES. Guedes promises that there will be more privatizations next year.

Updated at 18h55

Leave a Comment