São Paulo Authorities Demand Explanations Over $7 Billion Lighting Contract
The Public Ministry of São Paulo has issued a new order requiring the city's general prosecutor, Luciana Sant'Ana Nardi, to explain her management of a controversial lighting contract valued at R$ 7 billion, which the ministry says was deemed irregular by courts. The municipality's mayor, Ricardo Nunes, has defended the contract's regular execution, promising to provide all necessary clarifications once officially notified of the legal action.
The Controversial Contract and Its Scale
The contract, awarded to the consortium Ilumina SP—comprising FM Rodrigues and CLD Construtora—for public lighting services spans 20 years and totals R$ 6.9 billion, making it the most expensive such agreement in the city's history. The value exceeds the alternative proposal by the previously disqualified consortium Walks by R$ 3.8 billion. Additionally, a 2022 contractual amendment added R$ 3.8 billion for traffic signal services, further inflating the total expenditure.
Financial Impact and Legal Demands
The Public Ministry estimates that maintaining the irregular contract has caused cumulative losses of approximately R$ 513 million through July of this year, including payments already made. In response, the ministry ordered the city to block R$ 1 billion from former agents involved in the tender and from the winning consortium itself. A judge on August 5, 2026, confirmed these measures, stating the sum represents both the alleged losses and an equal fine.
Court Ruling and Alleged Collusion
A landmark decision by the Superior Tribunal of Justice (STJ) and Supreme Federal Court (STF) in December 2024 found that the 2018 bidding process improperly disqualified a lower-priced competitor, Walks. The court declared the entire procurement process null and void, though the appeal remained unresolved until late 2024. The Public Ministry argues that the city hall and the SP Regula lighting agency acted in collusion to delay compliance with court orders since April 2025.
City Defense and Ongoing Monitoring
The SP Regula administration maintains that the lighting contract proceeds normally, noting that the Municipal Audit Court confirms the bidding process respected deadlines and judicial mandates. The city has also stated it has fully cooperated with the Public Ministry, providing all requested information since the tender's restart. The municipality emphasizes that this issue has been under judicial scrutiny for nearly ten years without prior recognition of irregularity.
Conclusion
The situation remains under intense judicial review, with the Public Ministry seeking to halt future spending on the contested contract and compel the city to either fulfill the original tender or exclude the implicated parties. The deadline for the city to restart the competition, including reintegrating Walks, is set at 120 days from the latest order.