Operation Trojan Horse targets fraud in R$ 5.2 billion procurement in Bauru
The GAECO/MPSP executed 20 search warrants and 7 temporary arrest warrants in Bauru on suspicion of fraud in the city's largest tender, valued at R$ 5.2 billion.
GAECO launches operation against fraud scheme in billion-real waste management concession in Bauru
The Special Action Group to Combat Organised Crime (GAECO) of the Public Ministry of the State of São Paulo launched, on Wednesday (9/7), Operation Trojan Horse to dismantle an alleged bid-rigging scheme in the concession of the integrated urban solid waste management system of the municipality of Bauru. According to mpsp.mp.br, 20 search and seizure warrants and seven temporary arrest warrants were executed, as well as removal of public servants, asset seizure, diverse precautionary measures and judicial suspension of the contracts and the tender process itself.
In parallel, authorities conducted investigations in the so-called Operation Mobius, targeting irregularities in a selective waste collection contract in the same municipality.
Secretary as "Trojan horse" of private interests
The operation's name refers to the central strategy identified by investigators: the placement, within municipal administration, of a public servant with professional and economic ties to the private company benefiting from the alleged bid-rigging. From that position, private interests are alleged to have influenced the formatting and conduct of the tender procedure, allowing formally public decisions to be prepared in coordination with business representatives. GAECO also identified, in the same secretariat, another professional previously linked to the company under investigation.
Largest contract in Bauru's history
The contract is expected to last 30 years, with a global estimated value of R$ 5,259,651,116.06 — calculated based on values from February 2026. It is the largest public contract ever projected in Bauru's history. The economic scale and long duration make the indications of tender capture by private interests especially grave, according to GAECO.
The evidence gathered in the investigation suggests that the fraud was not restricted to the insertion of a restrictive clause in the tender documents. The scheme would have been constructed in layers: from the conception of the concession and preparation of technical studies to the definition of qualification and scoring criteria, including the hiring of consultants and preparation of official documents. The objective was to guarantee undue advantage to the company under investigation and eliminate competition.
Core group comprising public agents, business people and intermediaries
The investigations identified a group comprising public agents, directors and employees of private companies, consultants and intermediaries, with division of functions and coordinated action. There are indications of payments and undue advantages, restricted circulation of documents and interference in the preparation of administrative statements.
The investigation also revealed an attempt to expand the scheme to neutralise control mechanisms. The suspects even gathered personal information on a councillor of the Court of Accounts of the State of São Paulo allegedly responsible for reporting procedures in that body. Intercepted communications point to plans for approaching and infiltrating public institutions to obtain privileged information and possible offering of undue advantages.
According to the investigation, these actions are part of a broader architecture of influence and possible corruption of public agents, including in projects in other municipalities with values also in the billions.
Crimes under investigation and judicial authorisation
The operation aims to deepen investigation of the crimes of fraud against the competitive nature of the tender, active and passive corruption, administrative advocacy, ideological falsehood and criminal association, among others that may be identified. The measures were authorised by the Regional Court of Guarantees of the 3rd Judicial Administrative Region of Bauru and aim to preserve evidence, track payments and determine individual participation of each person under investigation. GAECO was supported by the Military Police and the Court of Accounts of the State in executing the warrants.
Source: Google News BR — São Paulo