Brazil’s Audit Court Blocks $700 Million Port Claim, Avoids Major Fiscal Impact

Brazil’s Federal Court of Accounts (TCU) has rejected a claim for reimbursement related to 70 years of operations at the Port of Imbituba (Santa Catarina), preventing a potential federal expenditure of BRL 3.6 billion. The decision was made on Wednesday (June 4) with a final vote of 5 to 3.

Five ministers backed a proposal from Minister Bruno Dantas, who voted to deny an appeal filed by Companhia Docas de Imbituba (CDI). The company had sought compensation from the federal government for services rendered since the era of President Getúlio Vargas. Valor previously highlighted the fiscal risk posed by the case in May.

At the heart of the case was whether CDI was entitled to reimbursement for managing the port—initially built in 1922, nationalized, and then operated under concession by the company from 1942 until 2012.

In its initial analysis, TCU’s technical department found that the concession’s “Compensable Results Account“ showed a negative balance, disqualifying CDI from receiving compensation. The company, however, argued that the federal government should bear the financial burden.

Initially, Minister Aroldo Cedraz voted against the reimbursement but reversed his stance after the case’s reviewer, Minister Jhonatan de Jesus, supported the claim. Minister Augusto Nardes joined both in supporting the appeal.

Back in May, when the vote resumed, Minister Bruno Dantas opposed the claim, stating, “We are dealing with a concession that lasted over 70 years. The appeal suggests it was not possible to amortize the investments made during that time.“ Senior minister Walton Alencar Rodrigues backed his position.

In the final vote, Ministers Antonio Anastasia, Jorge Oliveira, and Benjamin Zymler joined Dantas and Rodrigues in rejecting the appeal.

Source: Valor Econômico

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