Officials say government wants to ‘donate’ company to friends

The Association of Postal Professionals (ADCAP) criticized statements by the special secretary of the PPI (Investment Partnership Program) Martha Seillier, responsible for privatizations at the Ministry of Economy, about the sale of the company and accused the government of wanting to donate it to a group of friends”.

In an interview with UOL, Seillier stated that Correios will be auctioned for a symbolic value, as the minimum price will be much lower than the value of the company’s assets, since the buyer will take into account the costs that he will have to assume.

This is the account we are doing. We are going to price all Correios assets and remove from this amount the obligation to provide services in all cities in Brazil for a few more years. Then, let’s deduct from this amount all the obligations to pay taxes that the company does not currently have. Then there will be a small amount left, let’s say, which is how much we will ask for at the auction.
Martha Seillier, special secretary of the PPI in an interview with UOL

In a statement, the entity that represents postal workers stated that the secretary’s statements show that “the government’s mask has fallen” and that its real intentions have become clear.

“They want to donate the Correios to a group of friends in power and produce a postal blackout in Brazil,” said ADCAP.

The association claims that the sale of Correios is unconstitutional, as the project, which was originally presented as a breach of the postal monopoly to favor competition, resulted in a private monopoly.

According to the entity, the proposal has several mechanisms that would allow for a price increase, including the possibility that letter rates are differentiated depending on the origin and destination.

“The need to obtain resources to strengthen the Union’s cash and even for social programs has become a small value,” said the association. “Who in their right mind would think of selling for a small price a company that produced more than R$1.5 billion in profits last year and which has already accumulated more than R$1 billion in profits in 2021?”

The entity also accuses the federal government of lying about future projections of Correios’ results to justify the privatization of the company.

“The need to obtain resources to strengthen the Union’s cash and even for social programs has become a small value”, says the note.

If you don’t privatize, the company will go bankrupt, says secretary

Correios does not depend on government contributions (they are independent). Although they recorded losses between 2013 and 2016, the balance of the last 20 years resulted in a profit of R$ 12.4 billion adjusted for inflation. Of this profit, 73% (R$ 9 billion) were transferred to the federal government through the distribution of dividends.

In the interview with UOL, the secretary said that the company will not be able to remain profitable for a long time if it remains under public management. She stated that the ties of a state-owned company, such as the obligation to make a bid and the slowness in decision-making, make Correios less competitive in the area of ​​e-commerce (sales over the internet) every day.

Due to the low capacity to invest in the delivery of goods, the company will lose space in the sector, which is the main source of profits and supports the service of letters and correspondence, said Seillier.

We will not be able to contribute resources, take money from education, security or health to make investments in the Correios. It will start to have a divestment guideline, with the cut of cities with deficits, layoffs and the closing of branches.

How was the privatization of the Post Office approved by the Chamber

  • The company, which is 100% owned by the Union, will be sold in its entirety and will be renamed Correios do Brasil
  • It will continue with the monopoly (exclusivity) of letters and correspondence for at least five years
  • During this period, the company will be responsible for the universal postal service (obligation to take correspondence to all corners of the country), through a concession contract
  • The universal postal service will be regulated by Anatel (National Telecommunications Agency) and supervised by the Ministry of Communications
  • Anatel will set tariffs and readjustments for each service, including a “social tariff” for those unable to pay
  • Rates may be different depending on the social indicators of each region
  • Company will not be able to close branches considered essential to the postal service in remote areas
  • Employees cannot be dismissed without just cause for 18 months and there will be a POS (Voluntary Dismissal Plan)
  • Text does not provide tax exemptions or federal government subsidies for the postal service