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Brazil dismantles ring embezzling money from school lunches

Xinhua,May 10, 2018 Adjust font size:

RIO DE JANEIRO, May 9 (Xinhua) -- Brazilian police carried out a major operation on Wednesday against five criminal gangs thought to have embezzled at least 1.6 billion reais (about 450 million U.S. dollars) of public money destined to pay for school lunches in 30 towns.

According to a police statement, the operation involved over 600 agents in the states of Sao Paulo, Parana, Bahia and Distrito Federal to carry out 154 search and arrest warrants.

A number of public officials were also suspended and public contracts were suspended with 29 companies.

At least 85 people are suspected of being part of the ring. The investigation revealed that at least 13 mayors and four ex-mayors were involved in the corruption schemes, with 65 fraudulent contracts being used to embezzle the funds.

The case began in 2015 when the federal Court of Auditors identified a number of cases of embezzlement related to tenders for school lunches. A number of the companies involved had previously been investigated as part of a similar case.

The federal police revealed the five criminal gangs were working across 30 towns, and had contracts to supply school lunches, uniforms, classroom supplies and other services.

All those arrested are being charged with fraud, criminal association and corruption, facing prison terms of between one and 12 years. Enditem

 

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