Jandira: Rio was broken by a gang and became a hostage of the Temer government.

By Christiane Peres, on the Vermelho website.

“Rio was broken by a gang. The investigations with evidence against Sergio Cabral, the former governor, show this. Millions and millions embezzled, without any shame or scruples. And worse, now, Rio becomes a hostage of the Temer government with its adherence to the 'salvation plan',” criticizes Jandira.

The plan, approved earlier this month in a ceremony at the Palácio do Planalto, includes a total adjustment of R$ 63 billion by the end of 2020, encompassing spending cuts, increased revenue, loans, and the suspension of debt payments to the federal government.

At the time, the Finance Minister, Henrique Meirelles, stated that without fiscal adjustment there would be an "unsustainable" accumulation of unpaid bills in the future. The plan will be valid for three years and may be extended for an equal period if necessary. However, according to a law sanctioned in May by Temer, in exchange for the suspension of debts, measures such as freezing salary adjustments for public servants and restricting the holding of public service examinations are foreseen. Furthermore, the federated entity is obliged to hold negotiation auctions with creditor suppliers based on the highest discount to receive payment due from the government sooner.

According to Meirelles, with the approval of the agreement with Rio de Janeiro, the state will be able to offer the Rio de Janeiro State Water and Sewage Company (Cedae), which is to be privatized, as collateral to seek a loan of up to R$ 3,5 billion this year and, with that, "regularize its commitments to suppliers, salaries, pensions and other expenses." The minister expects this to happen by next month.

Jandira Feghali, however, points to the strategy as a trap and highlights the government's true intention with the imposed measure. “The sale of Cedae is a trap because it raises water and sewage bills for residents, harms already underserved areas, and removes the power of decision-making over an essential resource from the Rio de Janeiro government. Furthermore, the company is profitable. The reason for the sale is to satisfy market demand and nothing more,” she pointed out.

For her, the plan does not solve the state's situation, despite recognizing the importance of injecting resources. "It's ethereal in relation to what our state really needs, which is to re-develop its production chain, generate jobs, propose an economic development goal, and negotiate debts. Today, everything is suspended, with weak management lacking political capacity, using cheap marketing to survive and try to reach the end of the term," she said.