Paraná Suspends AI Surveillance Contract Over Rights and Data Concerns
Brazil's Paraná state suspended a 581 million reais AI surveillance contract with Paladium Corp. after auditors found governance failures in data protection, cost inflation, and legal procedural violations. The Olho Vivo system, already deployed across 22 municipalities, had been collecting vehicle location and movement data and storing it abroad without proper legal safeguards.
What happened
The Tribunal de Contas do Paraná suspended electronic bidding for the Olho Vivo surveillance program on 7 April 2026, two days before the scheduled procurement. The program, already operational in 22 municipalities with over 1,000 AI-enabled cameras, was being contracted to Paladium Corp. for 581 million reais over 60 months.
The tribunal identified six irregularities in the procurement process, including alleged data protection governance failures and cost inflation. Deputy Arilson Chiorato of the PT had filed a denunciation in March 2026 questioning the program's legality and citing lack of proper competitive bidding, noting the system was already operational before procurement.
Reported impact
The program collected geolocation, movement patterns and property data from all vehicles circulating in covered cities, sending the information to cloud storage outside Brazil. Deputy Chiorato described this as mass surveillance without legal basis and accused the state of acting as a 'data broker' for private interests without compliance with data protection impact requirements.
The tribunal found no adequate justification for monthly costs of 8.7 million reais, comparing unfavorably to São Paulo's Smart Sampa system which costs 949,000 reais per month while operating 40,000 cameras versus Olho Vivo's 20,000.
Index analysis
The tribunal identified insufficient procedural safeguards for sensitive personal data handling and risks of service duplication with existing state platforms. The audit noted that the Secretariat of Public Security, the intended end-user, was excluded from program design, with procurement directed by other agencies.
Deputy Requião Filho alleged pre-directed bidding, noting cameras were installed in São José dos Pinhais, Londrina and other municipalities without competitive bidding before the formal procurement process began.
Governance controls
The tribunal found the program lacked a required data impact assessment under the Lei Geral de Proteção de Dados Pessoais. The audit also identified absence of detailed service specifications to justify the contracted costs.
Classification
Sources and evidence
Sources not yet published
This record was researched and written by the Index from original reporting. Its sources are still being verified by an editor, and they are listed here once that check is complete. Until then the record carries no reviewer.