Sabesp Water Utility Sale Needs Investigating, Brazil’s Vice-President Said on 22 September 2026, 12 Days Before the São Paulo Election
BRAZIL · BUSINESS
Key Facts
- —The country. Brazil, 213.6 million people, has been led by President Luiz Inácio Lula da Silva since 1 January 2023. The first round of the national election falls on 4 October 2026.
- —The money. The real trades at about 5.13 to the US dollar. Brazil has the region’s largest economy and its biggest stock exchange, B3, where this sale was carried out.
- —What Sabesp is. Sabesp supplies water and sewerage to more than 370 municipalities in São Paulo state. On 23 July 2024 the state sold 32% of it on the B3 exchange at R$67 (US$13.11) a share. That raised R$14.7 billion (US$2.88 billion) and cut the state’s holding from 50.3% to 18.3%.
- —What happened. On Tuesday 22 September 2026, at a Workers’ Party rally in São Paulo, Vice-President Geraldo Alckmin said the sale needs investigating. He asked how so valuable a company drew only one interested buyer.
- —What is disputed. Alckmin named no prosecutor, auditor or court. State prosecutors, the Ministério Público, had already opened a preliminary inquiry on 15 July 2026 into the Sabesp and Emae sales. Equatorial, the single buyer, paid R$6.9 billion (US$1.35 billion) for 15% and cannot sell before December 2029.
- —What it means for you. São Paulo votes for governor on Sunday 4 October 2026 and both camps campaign on Sabesp. Fernando Haddad says it went 20% below price; Governor Tarcísio de Freitas says tariffs are 15% lower than they would have been.
- —The catch. No authority has opened a new investigation since Alckmin spoke, and it is unclear whether the July inquiry becomes a formal case. A union-backed tally of six deaths at Sabesp sites has no published method; three were residents and three worked for contractors.
Geraldo Alckmin says the 2024 sale of São Paulo’s water utility needs scrutiny. Sabesp and the state government defend the deal.
Vice-President Geraldo Alckmin called for a Sabesp privatization investigation on Tuesday, 22 September 2026, at a party rally in São Paulo. He was campaigning for Fernando Haddad, who is running for state governor against Tarcísio de Freitas.
What Alckmin Said and Where He Said It
Vice-President Geraldo Alckmin spoke on Tuesday, 22 September 2026, at a Workers’ Party national meeting in São Paulo. The venue was the Espaço Cultural Elza Soares, in the central Campos Elíseos district.
In Portuguese he said: “Essa privatização da Sabesp precisa ser investigada.” The words mean that the Sabesp sale needs to be investigated.
He then asked how one of the world’s most valuable companies could attract only one interested buyer. “Não é possível,” he added, meaning “it is not possible.”
Alckmin named no prosecutor, auditor or court. He closed by urging supporters to work hard in the 12 days left before the vote.
Haddad and the Senate candidate Marina Silva shared the stage with him. The event was a campaign rally, not a government announcement.
The 2024 Sale Behind the Sabesp Privatization Investigation Call
São Paulo completed the sale of 32% of Sabesp on the B3 stock exchange on 23 July 2024. Shares were priced at R$67 (US$13.11) each.
The state raised R$14.7 billion (US$2.88 billion) and cut its holding from 50.3% to 18.3%. Dollar figures use 23 September 2026 rates, about 5.11 reais to the dollar.
Equatorial paid R$6.9 billion (US$1.35 billion) for 15% and became the reference investor. It gained the right to name three members of the board.
Equatorial cannot sell that stake before December 2029. Sabesp serves more than 370 municipalities across the state.
Live Company IntelligenceCompanhia de Saneamento Básico do Estado de São Paulo – SABESP — the full investor dossier
Valuation & profitability
Price & risk
$23.0152-wk high
$35.32
Revenue trend · 6y
Ownership
Dividend
What Prosecutors Are Already Examining
São Paulo state prosecutors, known as the Ministério Público or MP-SP, are already looking at the 2024 sale. Their public assets unit opened a preliminary inquiry on 15 July 2026.
That step followed a complaint by state deputy Antônio Donato. It covers the Emae and Sabesp sales, alleged conflicts of interest and claimed links to Banco Master.
A separate MP-SP civil inquiry was opened on 9 June 2026. It examines safety rules on Sabesp excavation work after a fatal gas explosion.
No authority has announced a new Sabesp privatization investigation since Alckmin spoke. His words added political weight to inquiries that already existed.
The Six Deaths Report, Checked Line by Line
The union-linked broadcaster TVT News reported on 23 September 2026 that Sabesp works had left six people dead. The count comes from the water workers’ union Sintaema and the water rights group Ondas.
Three of the six were residents, not workers. Two died after a gas explosion in Jaguaré, in western São Paulo, in May 2026.
The third was a 79-year-old woman killed when a Sabesp pipe fell on her home in Mauá. That happened in September 2025.
The other three were workers employed by contractors, not by Sabesp itself. They died in Mairiporã in March, Hortolândia in April and Itaquaquecetuba in August 2026.
The tally is a union and media compilation with no published method. Those deaths span September 2025 to August 2026, a shorter window than the report’s headline suggests.
Sintaema argues that heavier use of contractors since the sale has raised risk on site. No official finding has linked any of the deaths to the change of ownership.
What Sabesp and the State Government Say
TVT News said Sabesp did not answer its questions before publication. The company has, however, spoken publicly about site safety this year.
On 3 June 2026 Sabesp said it was raising field inspectors from 200 to 600. It also added round-the-clock camera monitoring with artificial intelligence and wider safety zones around gas mains.
Chief executive Carlos Piani said the company would not accept further incidents. On the prosecutors’ inquiry, Sabesp said it was fully willing to cooperate with the authorities.
The state government says the 2024 sales followed technical rigor, transparency and broad public consultation. Governor Tarcísio de Freitas calls the Sabesp sale his most transformative project.
After the Mairiporã reservoir burst, the state government said it would compensate every affected household. It also said its priority was care for the injured and the bereaved.
Why the Sabesp Privatization Investigation Call Matters Here
For expats and investors in Latin America, the timing is the point. São Paulo votes for governor on Sunday, 4 October 2026, and both sides are using Sabesp as an argument.
Haddad said at a televised debate on 9 August 2026 that the utility was sold 20% below price to a single bidder. Tarcísio replies that tariffs are 15% lower than they would have been.
What is not known is whether prosecutors will turn the July preliminary inquiry into a formal case. It is also unclear whether any body will act on the Sabesp privatization investigation call.
The method behind the six-death tally has not been published either. The clearest signal will come from the ballot boxes on 4 October.
Frequently Asked Questions
Did Alckmin ask a specific body to investigate Sabesp?
No. He said the 2024 sale needs investigating, but he named no prosecutor, auditor or court in his speech.
Were six workers killed on Sabesp projects?
No. A union-backed tally counts six deaths between September 2025 and August 2026. Three were residents, and the three workers were contractor staff.
Is any inquiry into the 2024 Sabesp sale under way?
Yes. São Paulo state prosecutors opened a preliminary inquiry on 15 July 2026 into the Emae and Sabesp sales.
Connected Coverage
São Paulo Water Utility Sabesp Fined US$5.9 Million Over Sewage
Sources: Estadão via Diário do Grande ABC and Metrópoles, 22 September 2026; Agência Brasil; Ministério Público de São Paulo via CNN Brasil and Revista Fórum; TVT News and the Sintaema union; Poder360; Sabesp.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times
- São Paulo Nightlife Tonight: Sophy Sings Marilyn Monroe, September 23, 2026
- ArtRio 2026 Closes in Rio de Janeiro, Brazil, With About 50,000 Visitors, Down From About 55,000 in 2025
- Brazil Market Moves: NG.CASH Raises US$15 Million, Franklin Templeton Lists Five Funds on the São Paulo Stock Exchange, and a Dollar Bitcoin Future Opens