São Paulo Court Suspends Sabesp Privatization Vote

The City Council of São Paulo approved the privatization of the National Essential Sanitation Company (Sabesp) on Thursday, but a court decision has suspended the vote. Despite ignoring a court ruling requiring all public hearings and budget reports to be submitted before the second vote, the bill authorizing Sabesp's sale passed with a vote of 37 to 17.

Why this matters: The privatization ofessential services like water supply can have far-reaching consequences for the general public, particularly the most vulnerable populations. If successful, this move could set a precedent for the privatization of other essential services, potentially leading to increased costs and decreased accessibility for millions of people.

Renê Vicente, treasurer of the Union of Water, Sewerage and Environmental Workers of the state of São Paulo (Sintaema), criticized the vote, stating: "Unfortunately, they voted a second time without a debate, without a referendum and without really asking the public for their views on the privatization of Sabesp...". Vicente emphasized that the privatization of health facilities has led to instability in services and an increase in tariffs.

On Friday, Judge Celina Kiyomi Toyoshima of the Fourth Public Finance Court of São Paulo ordered the annulment of the last vote, citing the lack of public hearings and budget reports. In response, Vicente stated that the union will "strengthen judicialization and hope to demonstrate to the Ministry of Public Affairs, the National Audit Court the ineffectiveness of this process so that the process of privatization and water supply does not progress, transforming water into a commodity".

Sabesp's privatization has been approved by the Legislative Assembly of the State of São Paulo (Alesp) and Governor Tarcisio de Freitas (Republican Party). However, it requires approval from lawmakers to be effective in São Paulo. Thursday's vote was marked by demonstrations, with about 400 people barred from attending the final public hearing.

Union leaders worry about deteriorating service quality and increased tariffs, which could hurt people. Vicente highlighted that Sabesp supplies water to the entire capital of São Paulo and serves 28 million inhabitants of the state. The government argues that privatizing Sabesp would guarantee the company greater access to capital and greater efficiency.

The court's suspension of the privatization vote has temporarily halted the process, as the union seeks to demonstrate the ineffectiveness and potential negative impacts of privatizing Sabesp. With millions of São Paulo residents relying on Sabesp for their water supply, the outcome of this legal battle will have significant implications for the future of the state's water services.

Key Takeaways

• São Paulo City Council approves Sabesp privatization, but court suspends vote.
• Privatization could set precedent for other essential services, harming vulnerable populations.
• Union leaders criticize lack of public debate and potential for increased costs, decreased accessibility.
• Court orders annulment of vote due to lack of public hearings and budget reports.
• Outcome will impact 28 million people relying on Sabesp for water supply in São Paulo state.