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Brazilian court suspends Correios night mail tender

ECT Brazil

A Brazilian commercial court has suspended a tender process by the country’s public postaloperator, ECT (Empresa de Correios e Telegrafos), for night air mail services saying the bidding

process was fraught with “consistent indications of irregularities“.

ECT launched a tender process for its overnight mail deliveries since its current contractswith Skymaster and Total airlines are about to run out. The court claims the BRL 132.7 million (EUR49.7 million) contract is 60% over-valued and has suspended the tender while it seeks explanationsfrom Correios executives.

There have been wide-ranging spate corruption allegations in Brazil over the over-valuing ofpublic contracts and bribes paid to civil servants to secure them. ECT is one of the organisationsunder the spotlight, though it denies any wrongdoing by its employees.

Postal officials have been explaining to judge Raymond Path the complexities of its mailcontracts, which are measured against aircraft use and the varying loads and load capacities onflights. ECT is now awaiting the verdict of the court on whether the tender procedure can becontinued, albeit modified, or a new one should be launched.

The Brazilian press reported last year that ECT, tired of years of allegations over itsoutsourcing contracts, is considering launching its own air mail service through leased aircraftwhich might also, it believes, cut costs.

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