Brazil: Union files lawsuit against Sabesp for alleged contract irregularities

São Paulo’s Baixada Santista, Litoral Sul and Vale do Ribeira urbanization union (Sintius) has filed a civil suit against state water utility Sabesp alleging more than 19 million reais (US$ 8 million) in contract irregularities […] with engineering firm Saenge Engenharia de Saneamento e Edificações (Saenge).  The union claims service charges were overpriced by up to 500% […]. “According to the Sabesp pricelist, the cost to repair a PVC sewerage unit is 313 reais. However, Saenge is charging 916 reais and Sabesp accepted,” Sintius president Marquito Duarte said, adding that the contract stipulates more than 2,400 of these services. Sabesp said the final cost was the same as on the pricelist that was made public when the tender was launched.

Source: BNamericas [subscription site], 06 Mar 2009


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