VIE 19 DE ABRIL DE 2024 - 15:45hs.
Auction cancellation request

Brazilian unions Fenae and Contraf take action against Lotex privatization

The National Federation of Staff Associations of Caixa Economica Federal (Fenae) and the National Confederation of Financial Workers (Contraf-CUT) filed this Tuesday (15th), Civil Action in the 16th Federal Court of Brasilia requesting the suspension and cancellation of Lotex auction, whose bid opening is scheduled for October 22nd. This is the third time trying to auction off the exclusive instant lottery.

Fabiana Uehara Proscholdt, Secretary of Culture and representative of Contraf-CUT in negotiations with the bank, explains that the lawsuits are part of their fight against Caixa's privatization. “We warn that the concession hurts the principles of efficiency and administrative morality and can cause serious harm to the company,” she emphasizes.

The conditions of the concession are even more detrimental to the public interest. Remember that this is a 15-year contract expected to move R$ 14.7 billion (US$ 3.5bn),” adds Jair Ferreira, president of Fenae.

According to the text in the lawsuit “Fenae's and Contraf's interest in acting stems directly and essentially from their institutional objectives, since the Auction Notice PPI/PND 2019, a concrete act of management, aims, definitively, to promote the privatization of public service in an unmotivated manner, based on generic legislative authorization, constituting a discretionary act that harms the public patrimony, since Caixa has been an institution that for decades successfully and unquestionably promotes the operation of lotteries in Brazil, and, even if the bidding hypothesis was valid for the purposes foreseen in the mentioned Notice, it is prevented from competing in the bidding with private companies, national or foreign.”

This is the third attempt by the BNDES to materialize this process of privatization of public service. For bank unions, what is sought is to permanently exclude Caixa from the exploitation of the instant lottery and to unreasonably and unreasonably transfer this highly profitable exploitation to the private entity.

Fenae and Contraf understand that the privatization of Lotex, responsible for the popular “scratch card”, threatens the social transfers made by Caixa Lotteries. According to the bank's data, from 2011 to 2016, the lotteries raised R$ 60 billion (US$ 14.5bn), of which R$ 27 billion (US$ 6.5bn) went to finance projects in areas such as culture, sports, scholarship and public safety.

“There will be no interest in private enterprise to ensure, for example, that millions of Brazilians go to college with the help of Fies (local Student Financing Fund). This is the profile of Caixa Econômica Federal, a bank that has played a social role since its inception. This cannot be put at risk, because it is just one of the actions of the project that aims to weaken the bank and its employees,” says Fenae President, Jair Pedro Ferreira.

Source: Fenae