The Sorocaba city hall has renewed its contract with the Novo Sorocaba Ambiental consortium for garbage collection and urban cleaning services for an additional 12 months, amounting to R$ 157.6 million. This contract, which is one of the largest municipal contracts, represents nearly 3% of the city's total budget for 2026, which exceeds R$ 6 billion. With a daily expenditure of approximately R$ 430,000, the contract also includes a R$ 7.3 million increase and a 4.69% adjustment for inflation between December 2023 and December 2024.

The renewal follows a decision by the São Paulo State Court of Accounts (TCE-SP), which declared the original bidding process irregular in December 2025. The court highlighted several flaws in the bidding process and demanded that corrective measures be taken to ensure compliance with regulations. Despite the issues raised, the city administration has proceeded with the renewal, raising concerns about governance and financial oversight in municipal spending.

This decision has significant implications for Sorocaba's financial planning and governance. With such a large portion of the budget being allocated to waste management, residents and taxpayers may seek transparency and accountability in how these funds are managed. The controversy surrounding the irregularities could lead to potential public backlash and demand for reforms in the procurement processes for future municipal contracts, particularly related to essential services like waste collection.