Privatizations

Over the last few decades, privatization has been the mechanism employed by many countries for implementing meaningful State reforms.

Often privatization entails the transfer of public property to private ownership. Therefore, the National Privatization Program is inspected by the National Congress, as mandated by the Brazilian Constitution. Such inspection is conducted in conjunction with the Brazilian Court of Audit.

The Brazilian Court of Audit monitors all stages of the privatization processes by examining the applicable documentation and conducting inspections and audits of the company being privatized.

During the follow-up, the Court evaluates the compliance of the proceedings and the adequacy of the minimum prices being established. Whenever necessary, on behalf of the public interest and the preservation of the public treasury, the Court determines applicable corrections to be performed, as has been the case on several occasions.

As a matter of Quality Control, the Court has imposed the inclusion of  Quality of Service indicators and criteria of evaluation in the contracts, to allow end users the ability to demand, from the concessionaires and from the grantor, the excellence of service agreed upon. The Court also monitors the outsourcing of public services under the Union's responsibility, thus controlling on behalf of the common interest, the performance of the concessionaires.