Ponta Grossa Municipality notifies Prime for delaying Münchenfest; company may face fine and sanctions

Prefeitura de Ponta Grossa reported that it is notifying the company responsible for Münchenfest to formally submit the justification for the postponement of the 2026 edition. The party was scheduled to take place between November 6 and 15, at the Event Center, and was postponed by the organization without an announcement of a new date.

The realization of the event is linked to the permission of use agreement no 409/2025, signed with Promocom Eventos e Publicidade, a company linked to the Prime brand. The document provides for a fine and prevents contracting with the municipal administration if it is characterized by non-compliance with obligations.

"As for the announcement of postponement, the City Council informs that it is notifying the person responsible for the event to formally present its justifications for the decision," the municipal administration said in response to BnT Online.

The City Council also confirmed that the contract establishes penalties, but stressed that the application depends on legal procedures.

“The contract provides for penalties in case of non-compliance with obligations, including fines and other administrative sanctions, observing due process, contradictory and broad defense,” it said.

According to the municipality, the procedures will be followed “with rigor and transparency”, seeking to ensure compliance with contractual obligations and avoid damage to the population.

Contract provides for fines of up to 30%

The contract establishes a compensatory fine of 21% to 30% of the contracted amount if the company causes the total non-execution of the object. In this case, it also provides for the prohibition of bidding and contracting with the municipal public administration for two to three years.

The fine may be applied along with other penalties. The document also contemplates a penalty for delay and allows the termination of the contractual link in legal cases.

There is also a requirement for guarantee of execution corresponding to 5% of the contractual value, intended to cover, among other situations, losses arising from the non-compliance with the obligations and fines applied by the administration.

These consequences are not automatic. The City Council must analyze the justifications and ascertain any liability of the company, ensuring its defense. In the response sent to BnT Online, the municipality did not inform the application of penalties or confirm the opening of administrative sanctioning proceedings.

Company had reduced value and extended payment term

Before the announcement of the postponement, a second addendum to the contract, published on the National Procurement Portal on September 21, 2026, changed conditions for the celebration.

The instrument reduced by R$ 104,443 the value of the grant referring to the renewal, which went from R$ 417,772 to R$ 313,329. The payment is an obligation of the company with the municipality by permission to use the public space.

The additive also decreased the required minimum duration from six to four days and changed the mandatory minimum operating time from 6 pm to 3 am to 7 pm to 2 am.

Another change shifted the maturity of the award to November 30, 2026, after the period scheduled for the party. This extension was conditional on the presentation of suitable contractual guarantee by the company.

The same document retained the other clauses of the original contract, including the penalties forecasts.

Justifications will be analyzed

In the postponement statement, the organization cited economic difficulties, reduced public interest, political scenario and concerns with climate forecasts. It also announced the automatic return of tickets in up to ten working days, by the platform used in the purchase.

The public demonstration of the organization will now be followed by the collection of formal justifications by the City Hall. The municipal response does not clarify whether the postponement was authorized, whether there will be a new date or what referral will be adopted if the party is not held.

Read also: https://bntonline.com.br/cafe-empresarios-ponta-grossa-natal-show-awards/