Brazilian State Audit Courts Clash Over Public Procurement Contracts

In the state of Acre, the Tribunal de Contas do Estado (TCE-AC) ordered the immediate suspension of payments for Contract No. 016/2026 with Hydros Consultoria e Desenvolvimento Ltda., valued at R$5.445 million, citing possible irregularities in the electronic bidding process. Former state deputy and ex‑secretary of Agriculture Luis Tchê (PDT) released a note asserting that neither his administration nor the current secretary, Temyllis Silva, ever executed the contract or transferred any funds, and he criticized the court for informing the public through the press before formal notification.

In Pernambuco, the Tribunal de Contas do Estado (TCE-PE) issued a statement of “deep disagreement” with a recent injunction by the Tribunal de Justiça de Pernambuco that lifted its earlier suspension of a licitation to renovate and maintain 2,228 school properties. The court argued the judicial decision interfered with its technical‑administrative judgment and highlighted irregularities in the bidding documents, noting that competition reduced the contract value from R$399.4 million to R$198 million and that payments to ACetus Construtora Ltda. had previously been halted.