VIE 3 DE MAYO DE 2024 - 10:21hs.
Against automatic renewal

Brazil’s Prosecutor General questions lottery permission contracts without prior bidding

Augusto Aras, Prosecutor General of Brazil, filed a Direct Unconstitutionality Action (ADI) 6785 against the provisions of Law 12.869 / 2013, which deal with the lottery services permission regime, at the Supreme Federal Court (STF). He assesses that the new provisions of the referred legal document violate the principles of impersonality, morality, and the requirement of bidding. The action was distributed to Minister Edson Fachin.

According to Augusto Aras, Prosecutor General of Brazil, in 2013 the Federal Court of Accounts (TCU) considered the extensions of lottery permits signed without prior bidding to be irregular, having set a deadline for Caixa Econômica Federal to carry out the bidding procedure and revoke the contracts improperly extended.

The rule provides that, after bidding, contracts should be signed for a period of 20 years, with automatic renewal for the same period. The term is counted from the end of the permission term, regardless of its initial term.

According to the Prosecutor General, Law 13,177 / 2015 added two articles to Law 12,869 / 2013, providing that, as of the 2013 law edition, lottery permission contracts signed without prior bidding were considered valid and extended for a period of 240 months, even if TCU has declared their irregularity.

Principles

In Aras' assessment, this change violates the principles of impersonality, morality and the requirement of bidding for contracts with the public administration and the special character of the concession and permission contracts and their extension.

He also points out that the STF's jurisprudence is peaceful regarding the need for prior public bidding to grant public services to private individuals. "It is incompatible with the regime established by the 1988 Constitution to operate a lottery service without the proper grant from the public authorities, preceded by an indispensable bidding process," he claims.

Requests

The Attorney General asks to give interpretation according to the Constitution to article 3, item VI and sole paragraph, of Law 12.869 / 2013, in order to recognize that the contractual renewals mentioned therein are only authorized to the lottery permissions that have been preceded bidding process.

Augusto Aras also requests that the articles 5-A and 5-B of the same rule be declared unconstitutional, added by Law 13.177 / 2015.

Source: 94FM Dourados