Rio government defaults on Oi! Details

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Oi must reconnect the internet access of the state government of Rio de Janeiro as determined by the Rio de Janeiro Judicial Service. In default with the payment of the broadband plan, accumulating a debt of approximately R $ 300 million, state agencies went offline this Tuesday (26th), suspending Detran schedules, remote attendance of the Finance Secretariat, enrollment process of state network and other services.

The cut occurred at dawn due to the debts of the state government and the end of the contract with Oi. Essential services were affected, such as security forces – police and firefighters -, hospitals, the education network and other fronts of remote service and communication managed by the government of RJ.

At the time of the cut, the government contested the charge and went to court to have its network restored. “After the emergency contract was signed, the plaintiffs heard about evidence of overpricing of the prices charged by the defendant [Oi],” alleged the State Attorney General (PGE) in the appeal sent to the Public Finance Court of the RJ Court of Justice .

The document describes the irregularities in the service provided and attorneys state that there was “a charge for prices up to 40 times higher than those contained in the emergency contract”, when compared with the contracts for the same service to other entities in the state.

Reply from Oi

For Oi, there was no irregularity on the part of the contract. The company refuted “any allegations of overpricing” and claims that the government of RJ decided, without communicating with the company, not to renew the contract, ending the contractual regularity that was in effect until now.

Oi was forced to discontinue providing telephone lines and data links

In a natural consequence, Oi “was obliged to discontinue the provision of telephone lines and data links”, leaving several entities and institutions in the state without partial or total communication.

Furthermore, the government of Rio de Janeiro has been in default since 2017. “The company also points out that, despite a consistent default since 2017 and which reaches R $ 300 million in debt, it has acted in good faith and in a collaborative manner”. The provider claims that “for months it has been making several deals so that default and the termination of existing contracts do not have an impact on service provision”, but failed in the renegotiation approaches.

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