“Without legal certainty, it's risky to plan or invest,” says TCU president

On May 13, the president of the Brazilian Federal Court of Accounts (TCU), minister Vital do Rêgo, took part in the 14th edition of the “LIDE Brazil Investment Forum” in New York. Held annually by the Business Leaders Group (LIDE), the event brings together authorities and entrepreneurs to boost investment in Brazil. 

Vital was one of the speakers on the panel “Brazil and its role in the institutional framework with the United States”. Other authorities that took part in the debate were the President of the Supreme Court (STF), Luiz Roberto Barroso, the Attorney General of the Republic, Paulo Gonet, the former President of the Brazilian Central Bank and current President of the Inter-American Development Bank (IDB), Ilan Goldfajn, the President of the IDB from 2005 to 2020, Luis Moreno, and the Head of Content at LIDE, Carlos José Marques. 

In his speech, the president of TCU stressed the importance of institutionality as a foundation for democratic stability and economic development in Brazil. He pointed out that legal uncertainty drives away investors, makes credit more expensive and jeopardizes innovation. 

“When rules change frequently and without predictability, judicial decisions are in conflict or contracts are not respected, investors withdraw, projects lose competitiveness and innovation is severely impacted. In short, without legal certainty it becomes risky to plan, do business or even fund development in the long term,” he cautioned.

Vital do Rêgo outlined TCU's role in strengthening legal certainty through rigorous monitoring, open dialog and normative predictability. He also pointed out that excessive bureaucracy is a significant barrier to the development of Brazil. 

“TCU's work is based on strict observance of regulations, strengthening institutional stability and offering regulatory predictability to companies and citizens. This approach is based on open dialog and transparency, allowing investors to plan with confidence and entrepreneurs to be innovative without fear. This is how we contribute directly to a healthier business environment and the continued strengthening of democracy,” he said. 

When detailing the role of the Department of Government Audit for Mutual Agreement and Conflict Prevention (SecexConsenso), the president remarked that the initiative has enabled agreements and unlocked investments in strategic sectors, such as energy and infrastructure. 

“TCU has already managed to avoid or shorten disputes that could have paralyzed important projects, leading to direct benefits for society. I would highlight the energy sector, where negotiations mediated by the Court have resulted in savings for consumers of an estimated USD  528,7 million by 2025. Another example of success happened with strategic road projects, where mediation enabled investments of over USD 5,64 billion,” said Vital.