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Court decision halts privatization of Eletrobras

11/01/2018 at 19:18h

Brasília – The 6th Federal Court in Recife, Pernambuco has temporarily overruled Article 3rd of Executive Order 814 (Medida Provisória 814) from December 29, 2018. Article 3rd eliminated the prohibition, contained in law #10.848/2014, regarding the privatization of Brazil’s power utility Eletrobras and its subsidiaries – which had been added to the National Destatization Program.

The ruling by judge juiz Carlos Kitner comes in response to a class action questioning the revocation of Article 31 of that same law. The judge argues that the federal government has failed to justify the need to issue an urgent Executive Order “as the lights went out” last year, “substantially altering the framework of the national electric power industry.”

The attorney general’s office (Advocacia-Geral da União - AGU) said it will file an appeal challenging the executive order.

Via Agência Brasil. Translated by Gabriel Pomerancblum

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