Prosecutors request suspension of contracts worth R$ 2,5 billion.
Prosecutors see irregularities in ten bidding processes for the renovation of 98 subway trains during Geraldo Alckmin's (PSDB) administration in São Paulo; "One of the companies involved in the bidding, which also works on the train renovations, recently closed a contract with the New York subway. And the new trains in New York will have a lower price than the renovated trains here," said the prosecutor in the case, Marcelo Camargo Milani.
Bruno Bocchini
Reporter from Agência Brasil
São Paulo – The Public Prosecutor's Office (MP) of the State of São Paulo yesterday (3) requested the immediate suspension of ten contracts for the renovation of 98 trains of the São Paulo Metro, totaling R$ 2,5 billion. According to the MP, the contracts are flawed due to illegality. The administrative recommendation was delivered to the Metro, which has 30 days to present measures. The contracts were signed between 2008 and 2010.
“One of the companies involved in the bidding process, which also works on the train refurbishment, recently signed a contract with the New York City Subway. And the new trains in New York will have a lower price than the refurbished trains here,” said the prosecutor in the case, Marcelo Camargo Milani.
According to the Public Prosecutor's Office, three refurbished trains already delivered to the Metro, and already in operation, were at the center of accidents in recent years: on December 1, 2012 (when a train moved on its own at Jabaquara Station and collided with another); on August 5, 2013 (a train derailed on Line 3 - Red due to a problem with a part); and on May 16, 2013 (when a collision occurred between two trains on Line 3 - Red).
"Three accidents on refurbished subway trains. This is yet another indication that this refurbishment has been damaging to the subway system and to public finances in general," said the prosecutor.
According to the Public Prosecutor's Office, the contracts for the renovation of the 98 trains of the São Paulo Metro show signs of irregularities in the bidding process for selecting the companies that would carry out the work: In the contracts, only one company always applied to win the bid. "In the main contracts there was no competitiveness, that is, the bids presented only had one competitor and one proposal, which is the winning one," the prosecutor highlighted.
The Public Prosecutor's Office also emphasizes that there are indications that there was no benefit to the public treasury in the decision to renovate instead of purchasing new trains. There are also indications that the contracting of the service was split into ten separate contracts in an attempt to conceal the total value of the contract.
"The question is why refurbish a 40-year-old train, what the reason is for it. In all other major cities that have trains, the trains don't last that long. They become scrap metal. You build a new one. There is no other case of train refurbishment outside the city of São Paulo," said the prosecutor.
"For us, this is a clear loss to public funds. I consider this a total scandal and an absurd loss to public coffers. That is why we are proposing this suspension to the Metro," added the prosecutor.
The news outlet contacted the São Paulo Metro, but there was no response by the time this article was published.