Dispute between MDB and União Brasil over the Ministry of Mines and Energy stalls vote on the Transition Amendment, says Reuters.

BRASILIA (Reuters) - Leaders from the MDB and União Brasil parties are vying behind the scenes for the nomination of the Minister of Mines and Energy in the government of President-elect Luiz Inácio Lula da Silva, amidst the race to vote on the Transition Amendment in the Chamber of Deputies, sources familiar with the negotiations told Reuters.

Negotiations surrounding the ministry – which has a projected budget of 9 billion reais for next year – are pitting important members of Congress against each other and could either secure or jeopardize the formation of a support base for Lula in Congress for his third term starting in January.

For now, according to a Reuters report this Tuesday, the impasse in the appointment of ministers is one of the reasons stalling the vote in the Chamber of Deputies on the constitutional amendment that guarantees the continuation of the 600 reais Bolsa Família payment, among other points.

On one side, according to two sources, the leader of União Brasil in the Chamber of Deputies, Elmar Nascimento (BA), is one of those mentioned as a possible minister. He was appointed by Lira to report on the proposed constitutional amendment and has the support of the president of the Chamber of Deputies and also Senator Davi Alcolumbre (União-AP), former president of the Senate, according to the sources.

On the other hand, according to two other sources, the MDB in the Senate is scrambling to try and place former governor and senator-elect Renan Filho (AL), son of the legendary leader and former president of the Senate Renan Calheiros, in the position. The MDB's senatorial caucus already had strong influence over this area during the PT administrations, placing Eduardo Braga, Edison Lobão, and Silas Rondeau as ministers.

Behind this dispute lies a parochial feud: Arthur Lira, another supporter of the president, defeated Jair Bolsonaro, who has since reconciled with Lula, and Renan Calheiros, a lifelong supporter of the Workers' Party, are political rivals in Alagoas.

The Ministry of Mines and Energy, in general, is responsible for setting guidelines for the sector and has a number of affiliated bodies such as Petrobras and regulatory agencies like the National Electric Energy Agency (Aneel), the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and the National Mining Agency (ANM).

BAD LEGACY

Despite being the target of political maneuvering, last week the transition team for the energy sector presented a diagnosis of the sector, mainly for the energy area, and, in the words of member Maurício Tolmasquim, there would be a "bad legacy" from the Bolsonaro government.

The team acknowledged at the time that there is a risk that consumers may have to bear the burden of a potential increase in their energy bills due to actions by the current government, but assured that the new administration will try to take measures to prevent this from happening.

"The Bolsonaro government left a huge bill to be paid by consumers in the coming years, and it is clear that the minister who takes over Mines and Energy... will take all possible actions to reduce this bill for the consumer," said Tolmasquim, who was the interim Minister of Mines and Energy during Lula's administration at the time.

The ministry, in turn, refuted, in a statement released on Monday, the transition team's declarations about the legacy left by the current government.

In the statement, the ministry asserts that the estimate of 423 billion reais in costs to consumers due to the "hidden clauses" approved by Congress in Law No. 14.182, which allowed the privatization of Eletrobras, is "pure speculation."

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