Panel SA: Court of Auditors of SP orders government to recalculate and auction value of lotteries triples

Realizing the potential for losses for São Paulo’s coffers, the São Paulo Court of Auditors (TCE) determined that the government redid the calculations for the granting of state lottery services, known as Social Lottery.

The Budget and Management Secretariat of São Paulo then contracted a study by Fipe (Fundação Instituto de Pesquisas Econômicas). The result indicated that the minimum grant amount must be R$ 906.3 million – almost triple the initial amount (R$ 313.5 million). The contract will be for twenty years.

The auction had been suspended in March of this year. A representation made to the TCE-SP (Court of Accounts of the State of São Paulo) by the companies Hebara Distribuidora de Produtos Lotéricos, Madrona Advogados, IGT and Scientific Games against the bidding notice alleged lack of wide disclosure, including international, short term, flaws modeling, among other justifications.

After the reformulation of the notice, a new auction was scheduled for December 1st.

In the column, the TCE-SP informed that, so far, there is no representation or complaint about the new notice and the auction is maintained. Sought by Panel SA, Fipe said it does not talk about contracts with customers.

Questioned about the determination of the TCE, the Government of São Paulo, through its advisory, said that the contracting of the study by Fipe “reaffirms the commitment to publish concession notices with economic and fiscal responsibility. The state’s initiative foresees the generation of jobs and the collection of resources entirely directed to social programs”.

Julio Wiziack (interim) with Paulo Ricardo Martins and Diego Felix