JUE 2 DE MAYO DE 2024 - 09:38hs.
Suspicion of irregularities

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

The Prosecutor General of Brazil, Augusto Aras, filed a direct action of unconstitutionality in the Supreme Federal Court against provisions of Law 12.869 / 2013, which provide for the permission regime for lottery services. The action was distributed to Minister Edson Fachin. According to Aras, in 2013, the Federal Court of Auditors considered extensions of lottery permits signed without prior bidding to be irregular.

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 of the Republic, 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 as to the need for prior public bidding for the granting of public service 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 Power, preceded by an indispensable bidding process", he claims.

Requests

The Prosecutor General of the Republic 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. With information from the advisory of the STF.

Source: Conjur (with information from the STF advisory)