CCJ President Conditions Real Estate Sale's Usage: Earmarks Proceeds for Propaganda Purposes
Minas Gerais Legislature Conditions State Property Sales to Debt Reduction
In a recent development, Doorgal Andrada, president of the Constitution and Justice Committee of the Legislative Assembly of Minas Gerais (ALMG), has imposed conditions on the sale of state properties. The move is aimed at ensuring the funds generated from these sales are used exclusively to pay off the state's debt with the Union.
Governor Romeu Zema's administration had requested authorization to alienate assets, and Doorgal Andrada, as the relator, has distributed an addendum to Bill 3.733/2025. This new opinion postpones the discussion to at least next Tuesday.
The original proposal by Zema permitted the Tiradentes Palace to utilize the proceeds from a possible sale for purposes other than debt amortization. However, Doorgal Andrada's opinion restricts the funds to be "destined to the amortization of the debt or to the fulfillment of the obligations" of the Full Payment Program of States' Debt (Propag).
The amendment requires that the resources from the sale of properties be "fully" used to reduce the approximately R$ 165 billion of Minas Gerais' debt with the Union. This change discards the possibility of the funds being used for other purposes such as contributions to the Fund for Equalization of Federal Values (FEF) and investments in thematic areas.
Doorgal Andrada justifies the change by stating the necessity to "clarify" Bill 3.733/2025, ensuring any authorization given by ALMG is "limited to the effort to amortize the debt of the State with the Union, within the scope of the Propag."
The report also stipulates that the sale of properties will be limited to the modality of auction, with the minimum price for the alienation of the properties matching the market value. Furthermore, the assets linked to public indirect administration bodies, such as the University of the State of Minas Gerais (UEMG), the State University of Montes Claros (Unimontes), and the Institute of Social Security of the State (Ipsemg), must be transferred to the state before being offered by the Union.
The relator's opinion also requires the Zema government to provide updated copies of the records of the properties listed in the relation sent last Tuesday and, in case of sale, the appraisals issued or validated by the competent state body. These documents should be presented during the legislative process, preferably before the first round of processing is concluded.
This new stance by Doorgal Andrada signals a shift toward responsible fiscal management in Minas Gerais, aiming to leverage state assets to tackle debt and foster long-term financial stability. Enhanced transparency and legislative oversight mechanisms are being implemented to ensure the substantiated and prudent use of funds generated from the sale of state properties.
In light of the new conditions set by Doorgal Andrada, the funds generated from the sale of state properties in Minas Gerais will be exclusively utilized to pay off the state's debt with the Union, rather than being allocated for other purposes such as investments in thematic areas or contributions to the Fund for Equalization of Federal Values (FEF). Doorgal Andrada's amendment reinforces the need for the proceeds from these sales to be "fully" used for debt amortization, as part of the effort to achieve long-term financial stability through conscious and responsible finance management in the state, including frequent legislative oversight and increased transparency in the investing realm of real-estate transactions.
