OAB signals that it will file ADI in the Supreme to contest PEC of the precatory
The Brazilian Bar Association (OAB) signals that it intends to file a Direct Unconstitutionality Action (ADI) with the Federal Supreme Court (STF) to contest PEC 66/2023, approved yesterday by the Senate. In a note distributed on Wednesday, the entity states that PEC dos Precatory is a “aggression to fiscal responsibility and transfers to the citizen the burden of actions lost by municipalities and states”.
According to the President of the Special Commission on OAB-SP Judicial Precations and President of the Government Food Listing Movements (Madeca), Vitor Boari, in the long run, the PEC tends to multiply the debt of precatories continuously, making it unsustainable.
“PEC mechanics results in negative amortization, because monthly payments will be lower than interest charges and correction. This will compromise the public entity’s solvency in the long run and decimate the hope of creditors in receiving their precatory,” he says.
He argues that the text does not bring payment alternatives to the passive of precatory, and says that this should make the debt associated with them insolvable, given the insufficiency of annual payments to cover the debt charges and the system’s disability to absorb the flow of new precatory.
“What we see again is the National Congress with short -term media solutions, always legislating with eyes always in the next election to meet the Union, the governors and the mayors and leaving all those who elected them. They took advantage of the STF trial as a distraction element and approved the PEC without drawing attention.”
On Tuesday, 2, the Senate concluded the vote PEC 66/2023, which establishes limits for the payment of precatory and opens a new deadline for installment of municipal debts with their own social security regimes and with the General Social Security Scheme (RGPS). There were 71 votes in favor and two contrary to the second round vote. The promulgation session is due to be held on Tuesday, 9.
