TCU suspends releases of federal funds for Rail Transport due to irregularities on the Nova Transnordestina railroad, ban on funds until any losses are refunded

The Federal Court of Auditors (TCU) analyzed some representations, which presented irregularities, in the scope of the National Land Transport Agency (ANTT), related to contracts for some constructions of explorations of the Nova Transnordestina railroad. 

This cost of the railroad, used resources from the Federal Budget (OGU), the Northeast Investment Fund (Finor) and financing obtained from the Northeast Development Fund (FDNE), the National Bank for Economic and Social Development (BNDES) and the Fund Financing Constitution for the Northeast (FNE). 

The audit found some irregularities, namely: authorization for the construction of a railroad, without prior bidding, to the concessionaire that exploited the Malha Nordeste; precariousness, informality and inaccuracy of the work projects; mismatch between physical and financial execution, with strong indications that until then the payments made would be higher than the value of services completed; inaccuracy of the work budget. 

Some other improprieties that were verified by their work on the railroad include: undue extension of the concession period; indicative of the low quality of services performed; disfiguration of the economic-financial equation established on the occasion of the celebration of the original concession contracts. 

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The Court also found that the operation of the split was illegal, with the totally irregular creation of two concession contracts for the creation of new networks and granting it to the current concessionaire (Malha II), with most of the Original Northeast Mesh granted (Mesh I). 

Due to the entire result of the audit, the TCU cautiously determined the Ministry of Infrastructure (Minfra), the National Land Transport Agency (ANTT) and Valec Engenharia Construções e Ferrovias SA (Infra SA) that it does not have the release of federal funds or that authorize any release for works on the networks granted to Transnordestina Logística SA (TLSA). The entire prohibition should last until the conclusion of the accounts meeting, in which improvements are made and any losses caused by the Concessionaires and by Ferrovia Transnordestina Logística SA (FTL) are refunded. 

TCU and its technical unit are responsible for inspection went to the Port and Railway Infrastructure Inspection Secretariat. This process was reported by Minister Walton Alencar Rodrigues. 

In the year of 2020, the ANTT (National Land Transport Agency) presented a proposal for the expiry of the stretch that was granted to TLSA. In July 2022, the TCU plenary had already authorized the resumption of public investments in the development part. 

Last Friday (23), the ANTT signed the 1st Amendment to the concession contract with Transnordestinas Logística SA (TLSA). Despite having in mind the re-establishment of a new schedule for carrying out mandatory investments in Malha II, which still remains in the concession after the Salgueiro – Porto Suape stretch, in Pernambuco, was split. TLSA should consider up to seven years the period for the conclusion of its works in the remaining section of the concession.