Pedro Jaime, head of telecommunications at the Communications Ministry, says he?s going to examine the relevant legislation to see whether a public-service telco listed as a debtor by the social security system can renew its license. Brazilian law forbids government procurement of any kind from companies in arrears with social security contributions.
Incumbent local exchange carriers Telemar and Telefonica were listed as debtors by Social Security Minister Ricardo Berzoini on Wednesday, May 14, but both rebutted the accusation, saying they?re certified totally clean by INSS, the national social security institute. The debts located by the minister are under judicial review, they said.
Debt
