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Disrespect for state law and court decisions by the Minas Gerais government raises alerts about the dismantling of public assets!
A Minas Gerais Energy Company (Cemig) completed the sale of four more hydroelectric plants to Amber Hydroenergy Ltd., a group company J&F, belonging to the brothers Joesley and Wesley Baptist.
The contract, signed on February 21, occurs in a context of legal disputes related to the sale of a previous lot composed of 15 plants, the transaction of which was interrupted by the Court in December 2023 for not meeting legal requirements, such as carrying out a popular consultation and approval by Legislative Assembly of Minas Gerais (ALMG).
The acquired hydroelectric plants are located in Juiz de Fora e Manhuaçu, in the region of Wood zone; in Red Waters, at North of Minas; and in Uberlandia, at Mining Triangle.
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A Amber paid R $ million 52 for the package, including a premium of 78,8% in relation to the minimum expected value.
However, this operation still depends on the approvals of the National Electric Energy Agency (Aneel) and Administrative Council for Economic Defense (Cade).
Criticism of the government's sales strategy
The sale takes place against the backdrop of one of the most severe water crises that Minas Gerais has faced in recent years, raising significant concerns about the approach of the government of Romeu Zema (Novo) when selling strategic state assets.
In the last two years, Cemig has already divested itself of 19 plants, with 15 of these sales made in 2023 alone. State deputy Betão (PT) criticized the practice, stating that it is part of a project to dismantle state-owned companies in Minas Gerais. “This is a disrespect for the constitutional right to public consultation and popular referendum. Some of these plants are in strategic areas for the state,” he declared.
Failure to comply with the law and judicialization
The transaction of the four hydroelectric plants reflects a pattern of disrespect for State Law 15.290/2004, which stipulates the need for popular consultation and approval by a qualified majority in the Legislative Assembly of Minas Gerais (ALMG), that is, 48 of the 77 deputies, for the sale of subsidiaries of cemig or shareholdings.
This legislation was established during the government of Itamar Franco (1998-2002) with the purpose of ensuring public control over assets considered strategic.
Em August de 2023, cemig carried out the sale of 15 hydroelectric plants to Mang Holdings and Agricultural Ltda., without complying with these legal requirements.
This operation was suspended on December from 2nd Public Treasury and Autonomous Bodies Court of Belo Horizonte, in response to a class action lawsuit filed by Federation of Urban Workers of Minas Gerais.
A cemig appealed this decision, and the process is still ongoing. Despite this situation, the company went ahead with the sale of the new batch, once again ignoring its legal obligations.
Impacts on workers and the population
According to a Emerson Andrada, general coordinator of Union of Workers in the Energy Industry of Minas Gerais (Sindieletro-MG), privatizations constitute a direct attack on the rights of workers and the population of Minas Gerais.
“In the electricity sector, this process has a history of mass layoffs, outsourcing and precarious working conditions, with an increase in fatal accidents,” he highlighted.
He also warned that privatization tends to raise energy tariffs and deteriorate the quality of service, in addition to threatening universal access to electricity.
“Private companies are not committed to regional development. They only invest where there is greater profitability, which can leave poorer areas unassisted,” he explained.
Zema government's fractional dismantling strategy
As pointed out by Emerson Andrada, the government of Zema has followed a strategy of gradual sale of the assets of cemig and other state-owned companies, such as Copasa, with the aim of circumventing the need for popular consultation and legislative approval.
Em November 2024, the government submitted to Legislative Assembly of Minas Gerais (ALMG) proposals aimed at eliminating the requirement for a referendum and a qualified quorum for the sale of subsidiaries.
“What the president of Cemig is doing is the same thing that Zema has done with Copasa: selling little by little, in slices,” the deputy denounced. Concrete.
He highlighted that the population of Minas Gerais does not support the privatization of essential services, such as energy and water, and that the global trend is the renationalization of these sectors.
Resistance and mobilization against privatizations
O Sindieletro-MG and several other organizations are intensifying their actions against privatizations, promoting a series of awareness campaigns and social mobilizations.
“If Zema continues with this strategy, our response will be to expand mobilizations and strengthen unity between unions and social movements,” he highlighted. Emerson.
He also mentioned that the category is considering the possibility of a strike, if the government insists on dismantling state-owned companies.
“We have already taken legal action with the competent bodies and are in constant dialogue with the Public Prosecutor's Office and ALMG to prevent these operations from taking place without complying with legal requirements,” he said.
Lack of transparency in decisions
Experts warn that the population of Minas Gerais is vulnerable to decisions that are taken without due transparency or participation from society, especially in a scenario of water crisis and rising living costs.
The privatization of hydroelectric plants not only threatens public assets, but also compromises the energy and social future of the state of Minas Gerais.
SOURCE: BRASILDEFACT
The people of Minas Gerais were already complaining about the price of Cemig's energy. Now it's going to be the most expensive. I'm from Minas Gerais, but they deserve it, that's why I was elected. Zema, Cleitinho and Nicole.
Well done!
Zema, Cleitinho and Nicolas are scoundrels and are a setback for Minas Gerais
True! Three demons of the apocalypse
Here in my city, I pay the sewage treatment fee without having been blatantly robbed by this mafia. Here, there is a contract that no one can take away.
and here we are paying an absurd fee for treated sewage that we never had, I ask for help concrete
Either someone puts an end to Romeu Zema Neto's management of Minas Gerais, or he will destroy the state. We cannot let him produce a successor here, not even one who becomes a senator or a president.
These are places that cause losses, it must be
sell even. The future is in the photovoltaic system, because the sun is free and will last forever
Loss? Cemig is extremely profitable. I'm even a shareholder, and I don't like this. What you said makes no sense at all.
He has already finished with the state