The town of Sao Paulo’s new contract with Method 1 has been briefly suspended by a decide within the wake of a public petition.
Method 1’s earlier deal to race at Interlagos expired after 2020 – although final 12 months’s occasion by no means came about because of the Covid-19 pandemic.
There had been proposals for Method 1 to maneuver its Brazilian spherical to a brand new venue, supported by the President, for 2021.
However the deliberate circuit, set to be situated within the Deodoro suburb of Rio de Janeiro, confronted opposition owing to environmental considerations.
A brand new five-year contract was as an alternative agreed for Method 1 to stay at Sao Paulo from 2021 by way of 2025, with the occasion renamed in lieu of town slightly than the nation.
The deal was made doable by way of the occasion securing a brand new promotor within the type of Brasil Motorsport, an organization owned by the Abu Dhabi-backed Mubadala funding entity.
The earlier contract, which had been agreed beneath Bernie Ecclestone’s stewardship of Method 1, was not financially profitable for the championship.
However the brand new contract has been suspended to ensure that town judiciary to evaluate using the prefecture’s public funds in addition to the degrees of transparency concerned within the deal, owing to the alleged absence of an invite to tender.
Paperwork revealed by the court docket present that R$100,000,000 ($18.5m) of public funding can be used to subsidise the occasion throughout the course of the five-year contract.
Court docket paperwork clarify that “the hiring of a personal firm with out the opening of a bidding course of, on the excessive worth talked about, within the midst of a worldwide well being disaster, constitutes a real aberration and can carry monumental losses to the treasury.”
Decide Emilio Migliano Neto has outlined that organisers have 5 days to submit the related paperwork for evaluation.
“These details reveal unquestionably that, no less than on this abstract cognitive section, the rules of promoting and transparency are being violated explicitly,” he stated.
“There’s a must droop the execution of the contract in query, with a view to assess whether or not there have been successfully assets to cowl bills.”
This 12 months’s renamed Sao Paulo Grand Prix is because of happen on the rescheduled date of November 7 as a part of a triple header with Austin and Mexico Metropolis.