São Paulo municipality ends R$ 157 million contract with NGO under investigation for fraud
São Paulo municipality terminated partnership with ICB, linked to the producer of the film "Dark Horse". Contract was subject to investigations into suspected irregularities.
São Paulo free internet contract rescinded following fraud investigations
The São Paulo municipality has terminated the R$ 157.1 million contract with Instituto Conhecer Brasil (ICB), the organisation responsible for installing and operating free internet access points in communities across São Paulo, according to cnnbrasil.com.br.
ICB is chaired by businesswoman Karina Ferreira da Gama, owner of production company Go Up Entertainment, which produced the film "Dark Horse", about the trajectory of former president Jair Bolsonaro (PL).
Contract history
Signed in 2024, the agreement envisaged the installation of 5,000 internet access points through the Wi-Fi Livre programme, with an original value of R$ 108 million. In June 2025, an addendum extended the partnership by six months and reduced the installation target from 5,000 to 3,200 access points. Subsequently, the municipality authorised a new extension, this time for 12 months, adding R$ 49.1 million to the contract.
Investigations and Supreme Court determination
The partnership became the subject of investigations into suspected irregularities both in the hiring process and in the execution of services. Supreme Court (STF) minister Flávio Dino determined that the investigations be centralised at the Federal Police, under supervision by the Court.
The decision came after identification of connections between the investigation into the municipal contract and other investigations involving possible irregularities in the use of parliamentary amendments intended for the production of the film "Dark Horse". Dino also determined the suspension of the participation of entities and companies under investigation in public contracts and tender processes.
Evidence of financial irregularities
São Paulo Civil Police identified four invoices issued by another company totalling R$ 8.5 million, without issuance of the respective tax invoices or collection of corresponding taxes. The investigations also pointed to cancelled tax invoices used in accounting statements and duplicate payments of R$ 925,000.
A technical opinion from the Municipal Secretariat for Innovation and Technology, issued in February 2026, identified financial irregularities within the organisation and problems with contractual execution. In September, São Paulo's Public Ministry raised suspicion that public resources from the Wi-Fi Livre programme could have been indirectly used to finance the production of "Dark Horse".
Mayor's position and letter from Karina Ferreira
Prior to the contract termination, mayor Ricardo Nunes (MDB) had declared, in an interview with CNN Brasil on 11 September, that the municipality could end the agreement if necessary to comply with the judicial decision. Nunes warned that the measure could result in the deactivation of the 3,200 internet access points already installed, but also defended the legality of the hiring, stating that the process had been carried out through a tender with monitoring by the Municipality Court of Audit.
On 29 October, before the official break, Karina Ferreira da Gama sent a letter to Nunes reporting that the freezing of bank accounts and financial restrictions imposed by the judiciary had compromised the payment of workers linked to the institute. In the document, the ICB president requested support in finding a legal alternative that would allow regularisation of labour obligations and payments essential to the continuation of the project.
"I respectfully request your guidance so that we may identify an institutional path that allows us to evaluate the regularisation of labour payments and essential obligations related to the continuation of the project, including through possible technical and legal liaison with the competent bodies, if applicable", states an excerpt from the letter.
Municipal Secretariat justification
In a statement, the Municipal Secretariat for Innovation and Technology reported that it had not received a response from minister Dino to requests for clarification sent on 14 September and 2 October regarding the Wi-Fi Livre Programme contract. "With the suspension of payments to ICB from September, by order of the STF itself, it became unfeasible to continue services and therefore the Collaboration Agreement with the social organisation was terminated", states the statement.
CNN Brasil approached São Paulo municipality and production company Go Up Entertainment to comment on the contract termination. The space remains open for comment.
Source: Google News BR — Crime