In a move to safeguard the integrity of its public procurement process, the Brazilian government has canceled an auction for the importation of 263,300 tons of rice due to emerging concerns over the technical and financial capabilities of the winning companies. The auction, which was initially held on May 6, raised suspicions of irregularities and conflict of interest, particularly involving Neri Geller, the Secretary of Agricultural Policy, who has since resigned.The National Supply Company (Conab), under the leadership of President Edgar Pretto, has indicated that a new auction will be held, though the date is yet to be determined. The upcoming auction will incorporate more stringent oversight mechanisms to ensure transparency and the financial soundness of the companies involved. This decision was made in consultation with President Luiz Inácio Lula da Silva and after meetings with Ministers of Agriculture and Development Agrarian.The cancellation of the auction and the subsequent resignation of Geller have highlighted the Brazilian government’s commitment to combating corruption and ensuring that public resources are managed responsibly. The government aims to provide rice to the Brazilian population at a fair price, particularly in light of recent floods in Rio Grande do Sul, which have affected the country’s rice supply. With the involvement of the Federal Audit Court, the Attorney General’s Office, and the Federal Revenue Service, the government seeks to build a new, more modern, efficient, and transparent auction process.
Key points
- Brazilian government cancels rice import auction due to concerns over winning companies’ capabilities.
- Secretary of Agricultural Policy Neri Geller resigns amid conflict of interest suspicions.
- New auction to be held with participation of Federal Audit Court, Attorney General’s Office, and Federal Revenue Service for improved transparency.
