Maranhão Public Prosecutor seeks to block R$ 20 million loan for Lago-Açu

The Maranhão Public Prosecutor's Office (MPMA) has filed a lawsuit to suspend a loan of up to R$ 20 million requested by the municipality of Conceição do Lago-Açu from Banco do Brasil. The legal action, filed on October 16, cites a lack of technical studies regarding the municipality's debt capacity and the potential impact on public finances.

The proposed funds were intended for solar energy plants and road paving projects. However, the MPMA argues that the project fails to specify how resources will be distributed, the individual costs of interventions, or the specific locations of the services. Furthermore, the prosecutor questions the absence of details regarding interest rates, repayment terms, and estimated energy savings.

The investigation follows a representation by local council members. The MPMA also noted that the municipality failed to respond to official requests for clarification. The lawsuit seeks to prevent the signing of the contract or suspend its effects, while also requesting that Banco do Brasil be prohibited from releasing the funds until sufficient technical and budgetary documentation is provided.