São Francisco river diversion project under probe for overpriced contracts
São Francisco river
Federal Police (PF) launched Friday (Dec. 11) Operation Barren Lives-“Sinhá” Vitoria, an investigation into overpriced contracts for the engineering works on two of the 14 sections of the São Francisco river diversion project. A consortium formed by OAS-Galvão-Barbosa Melo-Coesa used shell companies to embezzle more than $50 million worth of public money.
The funds were intended for the river transfer at the section stretching from the so-called Agreste of Pernambuco to Paraíba. Contracts investigated so far total $180 million.
According to Federal Police, the investigation found that companies linked to the criminal organization are owned by a currency dealer and a lobbyist is also involved. Both of them are under investigation as part of Operation Car Wash.
The funds were intended for the river transfer at the section stretching from the so-called Agreste of Pernambuco to Paraíba.
Police are serving 24 search and seizure warrants, four bench arrests, and four arrest warrants in Pernambuco, Goiás, Mato Grosso, Ceará, São Paulo, Rio de Janeiro, Rio Grande do Sul, Bahia and Brasília. About 150 federal police officers are working in the operation.
The suspects will face charges of criminal conspiracy, contract fraud, and money laundering.
Police explained that the operation is named after Sinha Vitória, a character from Graciliano Ramos's novel Barren Lives described as a strong woman who would always check the calculations for the pay she and her family received from the owner of the farm where they worked only to find they were being cheated.
Translated by Mayra Borges
Fonte: São Francisco river diversion project under probe for overpriced contracts
