Wall Street Journal – by LUCIANA MAGALHAES and SAMANTHA PEARSON
SÃO PAULO—The multimillionaire star of the Brazilian version of “The Apprentice” TV show, who took over as São Paulo’s mayor this month, is set to embark on the biggest municipal privatization drive in the country’s history.
João Doria, who won a landslide victory in October and has drawn comparisons to U.S. President Donald Trump, said in an interview with The Wall Street Journal he plans to sell off everything from São Paulo’s carnival venue to rights to the city’s cemeteries, aiming to raise more than 7 billion reais (about $2.2 billion).
The plan by the businessman-turned-mayor comes as Brazil looks to shrink its cumbersome and graft-ridden government apparatus in the wake of a vast corruption scandal that has destroyed voters’ faith in traditional politicians.
“The heavy role of the state is one of Brazil’s most serious problems—it is inefficient and it invites corruption,” said Mr. Doria, adding that the country’s deep recession has made privatization more imperative.
“This is the moment for us to do this, when we are faced with a crisis of this size,” he said, speaking at the City Hall on Tuesday night at the end of what is typically an 18-hour working day.
Mr. Doria, whose $50-million fortune comes largely from the events-management empire he built, has applied the same brutal pragmatism to his own government. He got rid of the city’s fleet of 1,300 cars and told his staff to use Uber instead. Any city employee who is late to his meetings must also pay a fine of about $60 for every 15 minutes. “Everyone laughed at me, but they are all obeying now,” he said.
The 59-year-old mayor will kick off São Paulo’s privatization drive by selling Anhembi, home to the city’s annual carnival parade, and Interlagos, a Formula One racetrack, which he hopes together will raise an estimated 7 billion reais by the end of this year. With the help of McKinsey and other consulting firms, he plans to then sell off concessions to 107 parks, 22 cemeteries, the municipal funeral service, the crematorium, 16 markets, 29 bus terminals, the ticketing system for public transport, and São Paulo’s Pacaembu soccer stadium by 2018. The funds will largely go to health and education.
He plans to travel to the Middle East, South Korea and the U.S. over the next few months to drum up interest from investors, companies and sovereign-wealth funds.
“Modesty aside, I’m good at convincing people,” he said, pointing to a long list of multinationals he has already persuaded to donate goods and services to South America’s biggest city. Unilever is providing the city’s homeless with soap and toothpaste, while Mitsubishi and Honda are donating patrol vehicles. São Paulo’s most controversial freebie, though, has been cans of gray paint to paint over some of the city’s graffiti, sparking protests this week.
Mr. Doria, who is married to a sculptor with whom he has three children, said he is prepared for fierce opposition in a country where paternalism still runs strong. “It’s not enough for me to convince the rest of the City Hall; there will be protests, there will be people on the streets,” he said, with a defiance reminiscent of his father and political role model, a federal deputy who was exiled to Paris during Brazil’s dictatorship.
Last year’s toppling of Brazil’s Workers’ Party has left an electorate more open to privatization. “There is a new mentality emerging in Brazil now, so resistance to privatization is lower,” said Fernando Schüler, a political scientist at São Paulo’s Insper business school.
Mr Doria’s biggest challenge will be to convince investors. Geert Aalbers, senior partner at consulting firm Control Risks in São Paulo, said demand will depend on Brazil’s economic recovery, the concession models and financing options offered, and a glut of federal assets also being privatized.
Mr. Doria is hoping his status as an anti-politician will win over investors as well as ordinary Brazilians. Though he ran for the traditional center-right Brazilian Social-Democracy Party, or PSDB, his slogan was “I’m a businessman, not a politician.” While he hasn’t ruled out running for president one day, he has promised not to seek re-election as mayor.
Often seen in cashmere sweaters, Mr. Doria dressed up as a street sweeper on his first day in office in what he says was an act of humility. Despite his antiestablishment bent, he rejects comparisons with Mr. Trump. “I don’t identify with him at all,” he said. “Michael Bloomberg, though—he is a model for me.”
Write to Luciana Magalhaes at Luciana.Magalhaes@wsj.com and Samantha Pearson at Samantha.Pearson@wsj.com
http://www.wsj.com/articles/sao-paulo-mayor-joao-doria-puts-citys-assets-up-for-sale-1485366255
He should sell the Gov management of money to private interests – works like a charm.