São Paulo Court of Auditors Bars Governor’s Bid to Allow Prison Management by Private Sector

RIO DE JANEIRO, BRAZIL – The São Paulo State Court of Auditors issued on Monday, October 14th, a preliminary injunction to suspend the bid announcement of the São Paulo government to hire companies for the shared management of prison facilities in the state.

This decision, the second unfavorable to measures proposed by the administration of João Doria, should be published in the Federal Gazette of the State on Tuesday, October 15th.

Last week, the 13th Circuit Court Judge, Luiza Barros Rozas Verotti, ordered the suspension of the bid for hiring companies to take part in the administration of prisons, calling it a transfer to the private sector of functions exclusive to public power.

The São Paulo government has already appealed both decisions.

With the new injunction from the State Court of Auditors (TCE), signed by counselor Sidney Beraldo, even if the government succeeded in overturning the injunction, it would be theoretically forbidden to hold the public hearing scheduled for this Tuesday, to collect envelopes including the proposals of interested companies.

In addition to suspending the proceedings, the TCE granted 48 hours for the São Paulo government to send the full text of the notice to the body for review. The document will be examined and then the representations will be considered in plenary.

The TCE may determine any corrections or amendments to the public notice, determine the reopening or even request the cancellation of the bid. It may also consider that there are no issues and authorize the proceeding unchanged.

The suspension determined by the court of auditors attends the petition of a company (Soluções Serviços Terceirizados – Eireli), by Instituto Humanitas360 Brasil and also by lawyers Dayane de Oliveira Ferreira, Felipe Estevam Ferreira, and José Jodacir de Souza Júnior.

The allegations presented by this group claim restriction of competition and lack of public hearings. “The public notice had serious issues, such as lack of transparency, restriction of free competition and monopoly on the exploitation of prison labor,” says the Humanitas360 Institute.

The bidding process launched by the São Paulo government provides for the transfer of part of the services of four facilities in the cities of Gália (two facilities), Aguaí, and Registro. The envelopes with proposals would have been opened Tuesday. The facilities are under construction and are expected to be delivered by the end of 2019, with a total of 3,292 spaces.

The Secretariat of Penitentiary Administration reported that it has already appealed the decisions and is awaiting its outcome in order to be able to hold the hearing on Tuesday.

According to the portfolio, the preparation of the notice was preceded by technical studies, submitted at a public hearing in May this year, when there was broad involvement of stakeholders and contributions to the bid notice’s term of reference were collected.

The portfolio further says that it is not transferring State functions to the private sector. “The Police Power will remain the responsibility of the State, which will continue to be in charge of the internal and external security of prisons, as well as the general directorates and security and discipline, members of the Rapid Intervention Group, registration and classification of prisoners, among other functions.”

Source: Folha de S.Paulo