Skip to content
Submit incident
AII-1000-67171
ConfirmedA court, a regulator or the organization itself has stated the core facts, or the record cites a court or regulator source.Supporting sources are pending verification.

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.

7 April 2026 · Paladium Corp. · Privacy and surveillance
7 April 2026
AII-1000-67171
Quick facts
Category
Privacy and surveillance
Country
Brazil
Date
7 April 2026
Drafted by
Raidu Incident Detection

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

Category
Privacy and surveillance
Industry
Government, security and defence
Country
Brazil
Harm status
Potential harm
Intent
Unknown
Timing
Post-deployment
Harm types
Economic or property, Human or fundamental rights, Public interest
Harmed
General public
Consequences
System suspension or termination
AI systems
Olho Vivo
Regulations
GDPR (cited)

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.

How sources are verifiedSuggest a source for this incident