Brazilian authorities to promote expertise firms within the second half of 2022

The Brazilian authorities has delayed the privatization technique of two of its primary expertise firms for the second time amid considerations over potential dangers to nationwide sovereignty regarding the sale.

In line with the brand new schedule launched by the federal government’s privatization program, the sale of the Social Safety Expertise and Data Firm (Dataprev) and the Federal Processing Service (Serpro) have been postponed to the second half of 2022, when the presidential marketing campaign might be going down.

The Covid-19 pandemic had already impacted the federal government’s plans to promote each firms, a course of that was anticipated to conclude in June 2021. In line with the revised schedule, the plan was to get rid of the belongings within the first semester of subsequent yr.

Dataprev supplies expertise data companies to the Brazilian social welfare system. It treats and shops information associated to tens of millions of residents on advantages. Serpro supplies programs throughout all authorities our bodies and is staffed by about 6000 staff. The large IT property overseen by the agency consists of all of the tax-related data on people and companies.

In line with Brazil’s Federal Courtroom of Accounts, there are potential dangers regarding the sale of the primary federal IT state firms. The rapporteur of the method on the Brazilian federal accountability workplace, Minister Important do Rêgo, mentioned in December that the privatization of the expertise firms deserves “particular consideration.”

“[That is] resulting from the truth that the companies supplied by these firms help the technological infrastructure of related federal public administration our bodies, in addition to a few of the primary data programs and authorities applications associated to the method of digital transformation in Brazil” the minister famous.

When the sale was introduced in August 2019, Dataprev workers launched a manifesto elevating considerations over the way forward for data belonging to tens of millions of residents.

“[Serpro and Dataprev data] might shift to non-public servers — this may undermine the safety of data of virtually all residents which might be within the social safety system. This might compromise nationwide sovereignty over extraordinarily delicate information,” the manifesto argued.

The considerations raised by Dataprev staff have been echoed by a research revealed in April by the Inter-Union Division of Statistics and Socio-Financial Research (DIEESE). The research famous two essential components that may justify retaining management of Dataprev and Serpro. “First, [government control of the state-owned tech companies] prevents the privateness of — doubtlessly — all the Brazilian inhabitants from being uncovered to firms non-public firms, together with multinationals”, the research famous.

“Second, and even perhaps extra related, it avoids handing over to the non-public sector-especially to massive worldwide data expertise companies-strategic data that enables not solely to know the non-public information of every Brazilian citizen deeply”, it added. The analysis additionally talked about the chance of “massive scale manipulation”, by way of use of psychometric and micro-targeting applied sciences for industrial and even army functions.

In December 2020, the Brazilian Growth Financial institution (BNDES) introduced the winner of a young for modeling the method regarding the privatization course of for Serpro and Dataprev. The consortium comprising of the Brazilian subsidiaries of world consulting agency Accenture and PR agency Burson-Marsteller and regulation agency Machado, Meyer, Sendacz, Opice e Falcão Advogados are engaged on the privatization modeling work and conducting market analysis, nationwide and worldwide sectorial prognosis and regulatory research.

The businesses have been additionally tasked with proposing “options to privatization and conduct different specialised skilled companies needed for the structuring and implementation of privatization processes” regarding the state-owned firms.

Telebras, the state telecommunications firm, might be offered within the first half of 2022 as initially deliberate. The agency is accountable for tasks comparable to Brazil’s satellite tv for pc program — a delicate challenge, based on the federal government itself.

As a part of the federal government privatization program, Nationwide Heart for Superior Digital Expertise (CEITEC) is present process a liquidation course of. Within the southern state of Rio Grande do Sul, the centre situated in Porto Alegre was created in 2008 as a part of a set f authorities initiatives supposed to extend Brazil’s competitiveness in expertise.

The corporate, which develops and produces circuits for RFID and different particular purposes, has manufactured over 70 million chips per yr. Sensors produced by CEITEC are used on massive scale in areas comparable to cattle management chips and product monitoring. Different areas of utility embody visitors administration, passports and ID playing cards.