Brazilian government to sell technology companies in the second half of 2022

Brazilian government to sell technology companies in the second half of 2022

The Brazilian federal government has delayed the privatization approach of two of its key technological innovation firms for the next time amid worries about potential dangers to countrywide sovereignty relating to the sale.

According to the new program produced by the government’s privatization software, the sale of the Social Security Know-how and Information Corporation (Dataprev) and the Federal Processing Support (Serpro) have been postponed to the second 50 percent of 2022, when the presidential marketing campaign will be using location.

The Covid-19 pandemic experienced now impacted the government’s programs to market each corporations, a procedure that was expected to conclude in June 2021. In accordance to the revised program, the plan was to dispose of the assets in the to start with semester of up coming 12 months.

Dataprev offers engineering information and facts providers to the Brazilian social welfare technique. It treats and merchants knowledge related to tens of millions of citizens on benefits. Serpro supplies techniques throughout all federal government bodies and is staffed by about 6000 staff members. The substantial IT estate overseen by the agency involves all the tax-associated data on folks and enterprises.

In accordance to Brazil’s Federal Court of Accounts, there are likely hazards relating to the sale of the major federal IT point out companies. The rapporteur of the method at the Brazilian federal accountability workplace, Minister Crucial do Rêgo, reported in December that the privatization of the know-how companies deserves “specific interest.”

“[That is] owing to the reality that the expert services provided by these firms support the technological infrastructure of applicable federal public administration bodies, as perfectly as some of the major info programs and governing administration packages relevant to the course of action of electronic transformation in Brazil” the minister observed.

When the sale was announced in August 2019, Dataprev personnel introduced a manifesto increasing fears about the long run of facts belonging to millions of citizens.

“[Serpro and Dataprev data] could change to non-public servers — this would undermine the security of facts of almost all citizens that are in the social security technique. This could compromise countrywide sovereignty around very delicate facts,” the manifesto argued.

The considerations lifted by Dataprev employees have been echoed by a research printed in April by the Inter-Union Division of Data and Socio-Financial Scientific studies (DIEESE). The study famous two important factors that would justify retaining manage of Dataprev and Serpro. “To start with, [government control of the state-owned tech companies] stops the privateness of — possibly — the whole Brazilian populace from staying exposed to businesses non-public corporations, together with multinationals”, the study observed.

“Second, and maybe even far more related, it avoids handing around to the non-public sector-specifically to big intercontinental data engineering organizations-strategic details that allows not only to know the personal info of each Brazilian citizen deeply”, it extra. The analysis also mentioned the hazard of “massive scale manipulation”, via use of psychometric and micro-concentrating on technologies for commercial and even navy functions.

In December 2020, the Brazilian Progress Bank (BNDES) introduced the winner of a tender for modeling the process relating to the privatization course of action for Serpro and Dataprev. The consortium comprising of the Brazilian subsidiaries of international consulting firm Accenture and PR firm Burson-Marsteller and legislation organization Machado, Meyer, Sendacz, Opice e Falcão Advogados are operating on the privatization modeling get the job done and conducting sector investigate, nationwide and international sectorial analysis and regulatory scientific tests.

The organizations had been also tasked with proposing “choices to privatization and carry out other specialised professional solutions required for the structuring and implementation of privatization procedures” relating to the condition-owned corporations.

Telebras, the condition telecommunications corporation, will be bought in the initial 50 % of 2022 as originally prepared. The organization is dependable for tasks this kind of as Brazil’s satellite method — a sensitive situation, in accordance to the government itself.

As section of the authorities privatization method, Nationwide Center for Advanced Digital Know-how (CEITEC) is undergoing a liquidation process. In the southern condition of Rio Grande do Sul, the centre located in Porto Alegre was established in 2008 as part of a established f government initiatives intended to boost Brazil’s competitiveness in technological know-how.

The company, which develops and produces circuits for RFID and other distinct applications, has made above 70 million chips for each calendar year. Sensors made by CEITEC are utilized on huge scale in places these as cattle control chips and product or service tracking. Other areas of software contain targeted visitors administration, passports and ID cards.