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Public Procurement Blacklist Rises to a Total of 53 Companies

Public Procurement Blacklist Rises to a Total of 53 Companies

Among the companies included in this list, those linked to construction projects under the Integrated Municipal Intervention Plan (PIIM) stand out. The Public Procurement Service assures that the educational phase is over, and the next step is holding managers accountable. At least 53 companies are on the “blacklist” of the National Public Procurement Service (SNCP) and are prohibited from signing contracts with the State due to non-compliance with previously signed contracts, mostly related to construction.

The list, which grows or shrinks depending on the entry and exit of non-compliant companies, has not dropped below 50 since last year—a sign that the process of regularizing non-compliance has been time-consuming, according to a government source.

According to the SNCP director, evaluations have been carried out on companies and unfinished works under the Integrated Local Development and Poverty Reduction Plan.

Among the companies on the “blacklist,” construction firms with projects under the Integrated Municipal Intervention Plan (PIIM), being implemented in different provinces of the country, stand out.

According to Expansão, most of the companies on the non-compliant list are associated with projects from the program, launched in 2019 by the Government as a key tool for municipal development, and financed with resources from the Sovereign Fund totaling USD 2 billion.

These companies were sanctioned for contract violations and practices detrimental to the State. Being included on this list prevents companies from signing new contracts with the Government for a period that can range from one to three years, depending on the severity of the infraction.

Despite being on the public procurement “blacklist,” companies can negotiate with the State and be removed from the list earlier than scheduled, provided they fulfill the contract or, in the case of construction works, resume and complete the projects. There is also the possibility of returning funds already received.

“The State does not intend to lose money, and the possibility of negotiation is in this sense. For example, in the case of construction works, it is more profitable to resume a partially paid, stalled project than to start a new bidding process. But this does not mean we will be chasing after companies. Those on this list are the ones who need to worry about fulfilling the signed contract,” a government source told Expansão.

There is also the possibility that companies failing to comply with contracts signed with the State may be held legally accountable, especially when signs of fraud are detected, as some participate in public tenders without being in a position to fulfill them. They often rely on outsourcing, sometimes financed by the down payment provided by the contracting public entities.

Source: Expansão

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