The mayor of Conceição do Mato Dentro, in the central region of Minas Gerais, José Fernando Aparecido de Oliveira (MDB), said this Tuesday (31) that he was negotiating with singer Gusttavo Lima’s team to avoid paying a fine R $600,000 for the canceled show.
“We are moving towards a consensual repeal to avoid any kind of judicialization,” the mayor said.
Gusttavo Lima would perform on June 20 during the 30th Cavalcade of Senhor Bom Jesus Do Matozinhos Jubilee. The fee charged was R$1.2 million.
Gusttavo Lima and the Mayor discuss the presentation, which would cost R$1.2 million
The show was canceled after a report from the g1 It said the pledged amount would come from Financial Compensation for Mineral Exploration (Cfem), a tribute paid by mining companies to cities where mining activities take place. However, this money can only be used for education, health and infrastructure.
Bruno and Marrone’s show, which was rented for BRL 520,000, was also cancelled. Another 14 attractions are maintained.
“After all this confusion about our city, about our community, about my personal honor, we have made the decision to cancel the event for the good of public service, to keep the peace, to keep order,” the mayor said.
José Fernando defends that everything has been done within the legal framework since the return to the city will be very high. The city expects around 80,000 visitors.
“Federal Law 13,540 provides that 20% of Cfem be invested in activities related to economic diversification, sustainable resource development, and scientific and technological development. Tourism is economic diversification. And Cavalgada is religious tourism,” he said.
According to a contract between the municipality of Conceição do Mato Dentro and “Balada Eventos e Produções LTDA”, a company owned by Gusttavo Lima, totaling R$1.2 million, half of the money would be paid at the time of signing the took place in April of this year. The other half would be paid out by June 15, 2022.
However, the same contract also provides for a fine of 50% of the contract value in the event of termination. With this there is compensation and the sertanejo would not have to pay back the amount that would have already been paid according to the contract.
The contract is based on Federal Law 8.666 of 1993, which establishes general rules for tender and management contracts, which only provide for the return of the guarantee paid before the event in cases “through no fault of the contractor”.
Gusttavo Lima’s press office has not yet reported the signing of the agreement with the city hall.
The Minas Gerais State Department and the State Department of Accounting are investigating whether there were any irregularities in the musician’s hiring.