The Federal Audit Court (TCU) authorized the continuation of the privatization process of Centrais de Abastecimento de Minas Gerais S/A (Ceasa Minas) by the federal government. The Justice analyzed but did not accept the complaints of possible irregularities in the privatization process. Among them would be the leak of the notice for the Ceasa bidding to a group of businessmen. Now the asset can be tendered.
Privately-held mixed-capital company, Ceasa Minas was transferred to the Federal Government in 1996 and manages supply depots in six municipalities in Minas Gerais. The units are located in the cities of Uberlândia, Juiz de Fora, Caratinga, Governador Valadares, Barbacena and, mainly, Contagem, in the Metropolitan Region of Belo Horizonte (RMBH).
The ministers declared that there are no irregularities preventing privatization and that the National Bank for Social and Economic Development (BNDES) and the Special Secretariat of the Investment Partnerships Program met the requirements for privatization.
TCU makes recommendations for privatization of Ceasa
anyway, O Court made a series of recommendations. It determined, for example, that the BNDES review the projections of revenue from the usage fee of the concession of use contracts that have a grace period or discount. And also update the projected cash flows.
Another determination to the funding institution is that adjust the economic-financial assessments with the number of dismissed employees, the value of terminations and personnel expenses in cash flows.
Privatization of Ceasa Minas
Ceasa Minas was included in the National Privatization Program (PND) in 2000. But the process only began to advance in 2020. Since then, the BNDES started to conduct the process of contracting specialized technical studies to deepen analyzes and actions in view of the privatization of the company.
According to the Ministry of Economy, “the approval of the Court of Auditors strengthens the legal certainty and transparency of the process, in addition to allowing progress to the phases of publication of the public notice and the realization of the auction”.
And the next step concerns the forwarding the proposal to update the model to the Investment Partnerships Program Council (CPPI) for approval and subsequent publication of the privatization notice.
The privatization of the company was divided into three lots. Lot 1 consists of land owned by the company (greenfield) with a logistical and residential vocation, located in Contagem. Lot 2 deals with the sale of the company itself, and Lot 3 is the composition of the assets of Lots 1 and 2.
The winner of the auction will take over the warehousing business (deposit or sale of goods) and will sign the contract for the concession of use with the government of the State of Minas Gerais to operate the Producer’s Free Markets for 25 years.
The report tried to contact the Federation of Agriculture and Livestock of the State of Minas Gerais (Faemg) and the Commercial Association of Ceasa (ACCEasa-MG) to comment on the evolution of the process. Faemg declined to comment on the matter and ACCeasa-MG did not respond to phone calls.
Already some shopkeepers showed satisfaction and expectation regarding the concession of assets. According to them, despite the millions of reais transacted every month at the centrals, the units are “thrown to the ground”.
“Ceasa is falling apart and nobody says anything. Few people take the lead in the process. There are many years of struggle, but without many practical results”, said one of them.