Haddad once again criticizes Sabesp's privatization: 'A healthy company has turned into a problem'
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Former Finance Minister and PT pre-candidate for the government of São Paulo, Fernando Haddad Reproduction/EPTV The former Minister of Finance and PT pre-candidate for the government of São Paulo, Fernando Haddad, once again criticized the privatization of Sabesp this Tuesday afternoon (16), in Santa Gertrudes, in the interior of SP.
Former Finance Minister and PT pre-candidate for the government of São Paulo, Fernando Haddad
Reproduction/EPTV
The former Minister of Finance and PT pre-candidate for the government of São Paulo, Fernando Haddad, once again criticized the privatization of Sabesp this Tuesday afternoon (16), in Santa Gertrudes, in the interior of SP. He was in a meeting with representatives from the ceramics and coatings industry, Ciesp and trade associations.
The PT member classified the privatization process of the São Paulo basic sanitation company, led by the management of Tarcísio de Freitas (Republicans), as a "mistake" and that "a healthy company today has become a problem for São Paulo".
He had already criticized the process at an event for Veja magazine, on Monday (15), when he stated that the company was sold to the private sector "at a table of friends", with "opaque and non-transparent" criteria. (see below).
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READ ALSO: At an event with Tarcísio, Haddad states that Sabesp was sold ‘at a table of friends’; Now the governor supports privatization and says he focuses on 'results'
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'Recognize error'
Asked about what to do with Sabesp, the pre-candidate stated that it is necessary to "recognize the error of how everything was done". "The first step is to have a competitor. The rest were, throughout the process, excluded due to the inclusion of undesirable clauses. So, one of the largest sanitation companies in the world was funneled to a single competitor", he said.
"Then you sell at the lowest price, because it's not at the highest price you sold, because there was only one competitor. Then you sell another amount of Sabesp, plus 17% of Sabesp, at a competitor's auction price, choosing who to sell to, in a closed room. If you make a comparison between the sale price and the market price, you have a loss of 3.5 to 4 billion reais at the start", he stated.
"Apart from the increase in the bill, apart from the poorly done works, apart from the accidents, apart from the deaths, apart from the homes that were damaged, which are closed, cannot be used. What happened is very serious", he stated in reference to a Sabesp project that hit a gas pipe, causing an explosion that killed two men and affected at least 46 properties on May 11, in the West Zone of São Paulo.
Sold at a 'friends table'
Former Finance Minister, Fernando Haddad (PT), pre-candidate for the government of SP, at an event held by Veja magazine in São Paulo, this Monday (15).
Reproduction/GloboNewes
On Monday, at the event promoted by Veja magazine and attended by Tarcísio himself, Haddad stated that the company was sold to the private sector "at a table of friends", with "opaque and non-transparent" criteria.
A little earlier, the governor of São Paulo had defended the privatization of the company and stated that it was necessary to preserve the company's investment capacity, accelerate the universalization of sanitation and anticipate the goals set out in the Sanitation Framework (read more below).
According to the former Minister of Finance, "when we criticize the privatization of Sabesp, it is because we gave up R$3.7 billion in the second stage of privatization". "In the name of what did we do this? Why did we channel the concession to just one company, adding clauses that kept other investors away? There were three clauses added to keep away investors and it was left in the hands of one," he said.
"And, to make matters worse, after selling to just one of the interested parties, who obviously offered the price that suited him, because he had no competitor, he still sold to friends. To people chosen at a table, with absolutely opaque criteria and no transparency", he declared.
The statement was made after a question about PT governments being against concessions. In a press conference after participating in the event, Haddad was asked if he intended to renationalize Sabesp and stated that the issue must be treated with "very seriousness" because, in general, "those who sell public assets include a series of clauses in the contract that often prevent a review".
"I have to analyze all the consequences with the legal department. Now, what I can guarantee is that Tarcísio promised to reduce the water bill. Everyone can see that it was a lie. Whether it was bad faith or a technical error, we will investigate. The consumer is the one financing the investments, including paying twice for maintenance", he stated.
The PT member also said that he will review other contracts under the Tarcísio administration, such as the Muralha Paulista and the addition of Line 6-Orange to the subway.
What Tarcisio said
The governor of São Paulo, Tarcísio de Freitas (Republicans), candidate for re-election, during a Veja magazine event, this Monday (15).
Reproduction/GloboNews
The PT member's speech was made shortly after Tarcísio spoke at the event. Minutes before, the governor, who is running for re-election, was asked about criticism of the company's privatization and stated that "people always take the side of politics; we are focusing on results".
According to Tarcísio, the effects of the measure can already be observed in regions of Greater São Paulo. He cited as an example the municipality of Guarulhos, which, according to the data he presented, went from 2% of sewage treatment in 2019 to 45% currently, with the expectation of reaching 78% by the end of this year.
When commenting on the resistance of part of the population to privatizations, Tarcísio stated that the debate is usually contaminated by ideological issues and argued that practical results should be the main evaluation criterion. "Ideology and arithmetic are two values that don't mix," he said.
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