Paulo Garcia backs down and will not break with Saneago.
The mayor declared this Monday that dialogue is the best way forward and that "common sense will prevail" in the discussion about the efficiency of the services provided by the state-owned company in water and sewage treatment in Goiânia. At the beginning of the year, the city hall alleged that Saneago was not performing its work satisfactorily and threatened to cancel the concession contract. The company reacted and said it would demand R$ 1,9 million in compensation. The debate is yet another chapter in the less-than-friendly relationship between Paulo Garcia and Governor Marconi Perillo.
Goiás 247_ Mayor Paulo Garcia (PT) stated this Monday that dialogue is the best way to address the Sanego-city hall issue. The PT member had threatened to break the concession contract with the state-owned company that provides water and sewage services in the capital.
"What we want is to improve these services for the people of Goiânia. We will demand what is stipulated in the contract. The more radical option of canceling the contract, which is certainly a real possibility, could still be considered, but initially, we are open to dialogue. I believe it is the best solution and that common sense will prevail," Paulo stated in a press conference.
At the beginning of the year, the mayor signaled that he might cancel the Saneago concession and set up a commission, chaired by the deputy mayor Agenor Mariano (PMDB), to evaluate the efficiency of the services provided by the state-owned company. The city hall's justification was that Saneago was not fulfilling the contract and the services were poor.
Paulo Garcia received the commission's report last week but has not made it public, fueling rumors of a possible break in the contract. Saneago has always maintained a rigid stance against the city government. The state-owned company claims to have a contract with the municipality valid until 2023 and has stated it is prepared to collect R$ 1,9 billion in damages should the agreement be broken.
The tension surrounding Saneago was interpreted by the government side as an action by Paulo Garcia to show a certain rebelliousness towards Marconi Perillo. Behind the scenes, even allies of the Workers' Party member stated that it would be impossible to break with Saneago and immediately have the city government take over the water and sewage treatment of Goiânia.
The capital city was responsible for 39,8% of Saneago's revenue from January to October 2012, and in the first half of this year the state-owned company announced investments of around R$ 100 million in Goiânia.
Paulo Garcia and the president of Saneago, José Gomes da Rocha, are expected to meet sometime this week to discuss the services provided.