The Brazilian government has delayed the privatization process of two of its main technology companies for the second time amid concerns over potential risks to national sovereignty relating to the sale.
According to the new schedule released by the government's privatization program, the sale of the Social Security Technology and Information Company (Dataprev) and the Federal Processing Service (Serpro) have been postponed to the second half of 2022, when the presidential campaign will be taking place.
The Covid-19 pandemic[1] had already impacted the government's plans to sell both companies, a process that was expected to conclude in June 2021. According to the revised schedule, the plan was to dispose of the assets in the first semester of next year. [2]
Dataprev provides technology information services to the Brazilian social welfare system. It treats and stores data related to millions of citizens on benefits. Serpro provides systems across all government bodies and is staffed by about 6000 employees. The massive IT estate overseen by the firm includes all the tax-related information on individuals and businesses.
According to Brazil's Federal Court of Accounts, there are potential risks relating to the sale of the main federal IT state companies. The rapporteur of the process at the Brazilian federal accountability office, Minister Vital do Rêgo, said in December that the privatization of the technology companies deserves "special attention."
"[That is] due to the fact that the services provided by these companies support the technological infrastructure of relevant federal public administration bodies, as well as some of the main information systems and government programs related to the process of digital transformation in Brazil" the minister noted.
When the sale was announced in August 2019, Dataprev staff released a manifesto raising concerns over the future of information belonging