TCU, Brazil's Supreme Audit Institution, found evidence of fraud in the execution of works in 29 municipalities of the state Minais Gerais. A police investigation hit upon a criminal scheme to divert funds intended for the construction of low-income housing and sewage treatment plants. The investigation was part of Operation João de Barro on 20 June 2008, aimed at investigating alleged fraud in the federal government’s growth acceleration plan PAC. With this plan the government aims to invest 38.3 billion reais (US$ 23.5 billion = EUR 15.1 biilion) in basic sanitation by 2010. The police had 231 search warrants and 38 arrest warrants for projects carried out in 7 states as well as the federal district (where capital Brasília is located). Roughly 1,000 federal officers participated in the operation.

Web sites:

• TCU, Tribunal de Contas da União (Brazil’s Supreme Audit Institution)
• PAC, Programade Aceleraçãodo Crescimento (growth acceleration plan)
• Global Corruption Report 2008: Corruption in the Water Sector, released in New York on 25 June 2008 by Transparency International.

Related news: Brazil: environment minister to propose 10-year basic sanitation plan, Source Weekly, 11 Jun 2008

Source: BNamericas.com [subscription site], 23 Jun 2008

Tags: latin america & caribbean, transparency