Head of Brazil’s National Industry Confederation arrested
Federal Police agents on Tuesday (Feb. 19) temporarily arrested Robson Andrade, head of the country’s National Industry Confederation (CNI), as part of Operation Puppet Show (Operação Fantoche). Robson and ten other suspects have been accused of fraud in forging partnerships under the Ministry of Tourism with entities comprised by the so-called Sistema S—Sesi, Senai, Sesc, Sebrae. Their imprisonment was allowed by court authorities in Pernambuco. The probe targets partnerships between private associations and Sistema S.
Sistema S encompasses nine institutions linked to industrial, commercial, rural, and transport institutions, dedicated to the professional training and leisure of Brazilian workers.
In a note, CNI declared it is aware that its leader Robson Braga de Andrade is under custody with the Federal Police in Brasília to provide clarifications. “CNI was not given access to the investigation and believes that everything will be brought to light. As it has always done, the organization is willing to provide all information requested by the authorities.”
A mechanical engineer, Andrade was president of the Federation of Industries of Minas Gerais State (FIEMG) from 2002 to 2012, when he served his first mandate at the helm of CNI, before being re-elected in 2014 and 2018.
The operation launched by the Federal Police this morning was backed by the Federal Court of Accounts (TCU). Altogether, 213 federal police agents and eight TCU auditors have been serving search and seizure orders and ten temporary arrest warrants in the states of Pernambuco, Minas Gerais, São Paulo, Paraíba, Mato Grosso do Sul, and Alagoas, plus the Federal District.
Investigations
Investigators believe that the group has been active since 2002 and may have carried out transactions adding up to R$ 400 million. The amount circulated by means of contracts and partnerships between the private non-profits and the Ministry of Tourism as well as with units under Sistema S. Most deals included cultural events and advertisement. They were overpriced and were not fully executed, with sums siphoned off going towards companies run by the same family, whose name has not been disclosed.
In a note, the Ministry of Tourism had announced a full audit was to be carried out on all transfer mechanisms even before it had been informed of the police probe. The audit led to the cancellation of a $268 thousand contract. “The Ministry of Tourism, which is not targeted by the search and seizure warrants under Operação Fantoche is ready to collaborate with the investigation,” the ministry stated, further noting that no new partnership has been inked this year.
