Operation Paper School: fraud in school construction contracts in Rio reaches R$ 20 million
Civil Police and Rio de Janeiro Public Ministry execute 19 warrants against scheme of overpricing in school works. Asset freeze could reach nearly R$ 20 million.
Operation targets million-pound fraud in construction contracts for state schools in Rio
The Civil Police and the Public Ministry of Rio de Janeiro launched Operation Paper School on Thursday (1st), aimed at investigating an alleged fraud scheme in construction contracts in the state education network of Rio de Janeiro. According to agenciabrasil.ebc.com.br, 19 search and seizure warrants are being executed in municipalities including Rio de Janeiro, Niterói, Cabo Frio and Arraial do Cabo. The courts authorised the freezing of assets belonging to those under investigation in amounts that could reach nearly R$ 20 million.
The investigations by the Coordination for Investigation of Officials with Special Jurisdiction have identified evidence of contract steering, overpricing and diversion of public resources. A mechanism created to expedite small emergency repairs appears to have been exploited to contract large-scale works without bidding.
The analysis of contracts and cross-referencing of financial and property data identified companies that, although appearing as competitors, would have operated in a coordinated manner. The investigations also found suspicious evidence of pre-arranged proposals and failures in the oversight of executed services.
One of the investigated companies received approximately R$ 11.8 million in public funds. Of that amount, nearly R$ 10 million would have been withdrawn in cash. In January this year, the Civil Police seized R$ 500,000 shortly after a withdrawal made by the administrator of one of these companies at a banking branch in Duque de Caxias, in the Baixada Fluminense region. The action was triggered by an alert from the Council for Control of Financial Activities (Coaf).
According to investigators, a businessman would be responsible for organising proposals, controlling the account used to receive payments and participating in the withdrawal of funds. There is also evidence of transfers between companies and payments to people linked to public servants.
Part of the resources may have been converted into private assets. Among the goods identified are properties in Cabo Frio and Niterói, as well as assets estimated at more than R$ 32 million and a fleet of approximately 60 vehicles linked to one of the investigated individuals.
The Civil Police are now verifying whether the same model was replicated in other contracts. More than R$ 1.6 billion in works contracted through simplified procedures are under audit. The investigations continue to trace the destination of the resources and identify those responsible.
Source: Google News BR — Crime