PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
São Paulo, S.P., 05429-900
Federative Republic of Brazil
annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
in paper as permitted by Regulation S-T Rule 101(b)(7)__.
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes ______ No ___X___
registrant in connection with Rule 12g3-2(b):
COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO – SABESP
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ) No. 43.776.517/0001-80
NOTICE TO THE MARKET
Companhia de Saneamento Básico do Estado de São Paulo – Sabesp hereby informs its shareholders and the market in general about news published by the press concerning alleged irregularities in two contracts. Accordingly, the Company provides the following clarifications:
1) The construction works related to the Santos Emissary (agreement 35.333/06) were carried out when Mr. João Paulo Tavares Papa, who was mentioned in the news, had no connection with Sabesp.
2) Regarding the Praia Grande Emissary (agreement 1.622/14), the bidding process took place in 2014. At that time, Mr. João Paulo Tavares Papa was Executive Officer of Technology, Enterprises and Environment of Sabesp. After analyzing the qualification requirements of the proposal with the lowest value, it was considered unfit because it did not complie with the technical requirements described in the bidding document, given that it did not prove experience in the construction of maritime Emissary, but only in river Emissary. The other bidders met all the technical requirements. The contract was signed on June 3, 2014, when the said Executive Officer had no connection with the Company. The execution of the services did not begin because the unfit bidder appealed to the Court. The matter remains without a final decision by Court and to date there has been no payment related to this contract.
Sabesp reaffirms its commitment to fully comply with its obligation to disclose information to the market in accordance with the current regulations and with its policy for disclosing material facts.
São Paulo, April 25, 2017.
Rui de Britto Álvares Affonso
Chief Financial Officer and Investor Relations Officer
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Companhia de Saneamento Básico do Estado de São Paulo - SABESP | ||
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Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer |
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.