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Federal government does not agree with the control of the Delta by J&F

Brazil’s federal government does not look favorably upon the control of Delta taken by J&S. It thinks the group has no expertise in construction and it would prefer a contractor to be in charge. Two weeks ago, the federal government initiated an administrative proceeding that may mean that Delta will go five years without being able to sign contracts with federal agencies. It is also contracted by several states.

In practice, most of the contracts signed can be terminated before the end of this government’s mandate. The market believes these contracts were manipulated, driving up interest in the acquisition by large construction firms because the company's strategy to win most bids was to offer a price well below its competitors with proposals deemed to be inexplicable. There are, however, lucrative contracts in the service area.

Delta has been identified by prosecutors as part of the criminal activity overseen by businessman Carlos Cachoeira in the Center-West.

Information provided by Folha de S. Paulo

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