The Court of Auditors of Mato Grosso do Sul (TCE-MS) should conduct a thorough review of the Lotesul tender in Mato Grosso do Sul.

The technical staff of the Court of Auditors of the State of Mato Grosso do Sul (TCE-MS) has requested the hiring of a team specialized in lotteries to conduct a thorough review of the bidding process to select the manager of the electronic platform for the Mato Grosso do Sul State Lottery (Lotesul), reveals a report by Correio do Estado.

The complaint to the Court of Auditors was filed by Jamil Name Filho, known as Jamilzinho, and the company Criativa Technology, based in Dourados. They alleged that the bidding process was rigged, suspecting that the excessive technical requirements were evidence of an attempt to restrict the participation of companies in the bidding process.

Following the request to challenge the bidding process, Councilor Márcio Monteiro, in a decision on the 9th, ordered the suspension of the bidding, which should have been concluded on the 17th, but was halted due to a request for clarification.

The suspension was implemented precisely so that the technical area of ​​the Court of Auditors could analyze the public notice and determine whether there was any possible manipulation of the bidding process.

In response to this analysis, a ruling by the Public Procurement Oversight Division of the TCE-MS (Court of Accounts of Mato Grosso do Sul) on Tuesday requested that the tender be analyzed by experts in the field, taking into account the "highly specialized nature of the alleged irregularity and considering the possibility of hiring internal or external specialists in situations that require specific technical knowledge."

"This Inspection Division suggests to the reporting advisor that he assess the appropriateness of appointing a specialist in the area of ​​lottery systems technology," the dispatch states.

According to the technical team's analysis, "the expertise of a specialized professional is justified by the need for assistance in the in-depth analysis of the technical specifications of the tender, the compatibility of the proposed solution with the needs of the State Finance Secretariat, and the reasonableness of the costs involved, thus ensuring a more robust and secure assessment for the decision-making of this Court of Auditors," the ruling stated.

According to lawyer André Borges, who is defending Jamil Name Filho in this case, the TCE-MS's choice to use a technical analysis was the right one.

“The TCE-MS (Court of Accounts of Mato Grosso do Sul) has acted technically. The body correctly assessed the importance of the bidding process: everything that can be done to better oversee the Executive's actions should be applauded. We await the final result because the law is clear in prohibiting unjustified reductions in the number of participants, as established in the challenged bidding document,” declared Borges.

The company that meets the criteria established in the tender will operate the state lottery system, which is expected to make games available entirely electronically, with the possibility of accrediting operators for betting on sports results (so-called bets) and even for other modalities, such as online casino games, the most famous of which currently are Aviator and the "little tiger game".

The company that wins the bid, according to the terms of reference accessed by Correio do Estado, could have an annual revenue of up to R$ 1,4 billion, according to an estimate made by the state government.

Although the bidding notice states that the "estimated average annual revenue from platform remuneration is R$ 51.474.339,31", the terms of reference state that the value can reach up to 0,85% of the state's Gross Domestic Product (GDP), which is R$ 166,8 billion.

Favorita
Complaints from business owners about the Lotesul bidding process began when some interested parties suspected possible bias in the tender, primarily favoring the company PayBrokers.

Currently, the company controls the Paraná state lottery. The company responsible for operating the Paraná State Lottery (Lottopar) won the bidding process in 2023, with a contract worth R$ 167 million with the state government.

Impeachment
The decision to suspend the bidding process for the management of Lotesul, taken by TCE-MS council member Márcio Monteiro on the 9th, was given "until this Court of Accounts issues a ruling on the legality of the bidding procedure, thus avoiding harm to the public interest."

"The complainants allege that the challenged bidding notice contains evidence of bid rigging, due to unusual and unjustified conditions, as well as challenging several items in the terms of reference that compromise the competitiveness and/or economic viability of the bidding process, both for the competitors and for the state of Mato Grosso do Sul itself," stated an excerpt from the document that ordered the suspension of the bidding process.

The same applicants who requested the annulment of the bidding process (Jamilzinho and Criativa Technology) had also filed an appeal with the State Finance Department (Sefaz), however, the request was denied by the department.

The bidding process to control Lotesul took place on March 17th, but was suspended shortly after it began, with three bids submitted.
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The winning bidder could remain in charge of the billion-dollar business for up to 35 years. According to the tender, the estimated annual revenue is R$ 1,4 billion.