Brazil's Supreme Court seen ditching any govt request to revise Eletrobras privatization -sources
By Ricardo Brito
BRASILIA, April 4 (Reuters) - Brazil's Supreme Court is expected to reject any request from the country's new leftist government to revise the privatization of power firm Eletrobras , carried out during the administration of former president Jair Bolsonaro, according to three court sources.
The stance means one of the economic hallmarks of Bolsonaro's right-wing government would likely remain intact even after President Luiz Inacio Lula da Silva asked cabinet members to search for loopholes in the process that could allow his administration to legally question it.
Eletrobras, Latin America's largest utility, was privatized in June 2022, when the government diluted its then controlling stake in the firm in a $6.9 billion share offering.
But Lula, a longtime opponent of the privatization who previously dubbed it "erratic" and "almost banditry," asked his solicitor general to look for ways of questioning the process when he took office from Bolsonaro earlier this year.
The solicitor general did open studies for that purpose in February but, should the matter be taken to the Supreme Court, justices would likely uphold the privatization, according to the sources, who asked not to be named.
One Supreme Court justice said they see no room for a potential privatization reversal request to succeed in court or Congress, calling any such initiative "not serious".
Last year, opposition parties to the then Bolsonaro government asked the court to halt the privatization process while it was being discussed by Congress, but none of their requests was granted.
A second source said there was "no chance" of a potential government request succeeding, while another source acknowledged such a move would have "little chance" of succeeding, noting that current court members have taken a more liberal stance on economic issues.
The solicitor general's office did not immediately respond to a request for comment. (Reporting by Ricardo Brito; Writing by Gabriel Araujo; Editing by Christina Fincher)
