Amendments by Lula’s minister support contractors targeted by the PF – 02/02/2023 – Power

At least R$ 42 million indicated by the Minister of Communications, Juscelino Filho (União Brasil-MA), irrigated contracts with contractors who are at the center of suspected irregularities in works by the federal state-owned Codevasf (Companhia de Desenvolvimento dos Vales do São Francisco e do Parnaiba).

The main beneficiary was Engefort, which received commitments of around R$ 22.8 million. The TCU (Tribunal de Contas da União) points to the construction company as the main beneficiary of an alleged cartel scheme.

As revealed to Sheetthe company dominated Codevasf bids in 2021 and in part of them used a closed company.

Another beneficiary is Construservice, which had R$ 19.3 million committed from funds allocated by Juscelino for works in several municipalities in Maranhão. The contractor has as a secret partner the businessman known as Eduardo DP, who was arrested in a Federal Police operation in 2022 for alleged fraud in bids and embezzlement of federal funds at Codevasf.

The federal state-owned company denies irregularities in hiring and claims that the companies competed in bids as required by law. The investigations, however, show signs of irregularities in some of the bids involving contractors.

The minister was chosen by Luiz Inácio Lula da Silva (PT) for Communications as a way to accommodate União Brasil in the first echelon of government.

In the Jair Bolsonaro (PL) government, Juscelino benefited from negotiations between Congress and the Executive for the release of funds, when he was a federal deputy for Maranhão.

Records in commitment notes from the federal government, in addition to documents from the Ministry of Regional Development, show that he sponsored at least BRL 77 million from 2019 to 2021.

Most of the resource is from the rapporteur’s amendments. There is also a “budgetary highlight”, a resource that was released by the government before 2020, when the amendment that would become one of the main bargaining chips in the relationship between the Bolsonaro government and Congress had not yet been created.

This resource was mainly used by Codevasf in paving works in Maranhão.

In 2022, when Congress began to disclose the nominations of parliamentarians, Juscelino suggested transfers of BRL 16.5 million through this type of amendment, mainly to reinforce municipal health funds in Maranhão.

There is no database that points out the total number of Juscelino indications that have been pledged and paid. When contacted, the minister did not say what figure he had indicated in recent years.

Part of the resources was distributed to city halls through agreements with Codevasf. In one of the cases, revealed by the newspaper O Estado de S. Paulo, the municipality of Vitorino Freire (MA) signed a R$ 7 million contract with Construservice, the main work being to pave the road that leads to a farm in the minister.

The city is governed by Luanna (União Brasil), sister of Juscelino. Construservice participated alone in the bidding process opened by the city of Vitorino Freire.

Another three works indicated by Juscelino —of BRL 10 million— and carried out by Engefort in the same municipality became the target of the CGU (Controladoria-Geral da União). In a 2022 report, the agency stated that there were “a series of unnecessary services”, such as the removal of trees and roots on roads in an urban environment.

In a note sent to Sheet Last year, Juscelino said that Codevasf “already provided clarification” to the CGU on the works carried out in its sister city.

“In relation to the works carried out with funds from my own amendments, it is important to say that the works were duly carried out and concluded, benefiting and improving the lives of dozens of families in Vitorina”, said the then parliamentarian.

Codevasf stated that it observed recommendations issued by the CGU.

“Codevasf has a solid governance structure and actively collaborates with the inspection and control bodies and the Justice. The company’s bidding procedures are carried out in strict compliance with the applicable legislation”, stated the federal state-owned company.

The minister, through his advisory, stated that the amendments “benefit several needy communities in the interior of Maranhão, being a perfectly legal measure”.

“As with any amendment, the responsibility for contracting lies with the executor of the work, and not with the parliamentarian. A parliamentary amendment, it should be said, is a legitimate and democratic instrument,” he added.

He declared that the attempt to associate the deputy and the amendments with the companies is “an inference”.

The TCU points to Engefort as the main beneficiary of an alleged cartel of paving companies in frauds to Codevasf bids that exceed R$ 1 billion. This contractor alone won public notices with evidence of irregularity of around BRL 893 million, according to court auditors.

To carry out the fine-tooth comb, the TCU adopted as a basis a guide to fight cartels used by Cade (Administrative Council for Economic Defense). With that, he says he found evidence that the actions of the asphalt cartel involved proposals for facades and a combination of rotation between companies.

The investigation by the technical area of ​​the court was prompted by a series of reports by the Sheet about Codevasf’s bidding maneuvers and the participation of a shell company in the tenders won by Engefort.

The PF operation in relation to Construservice, entitled Odoacro, had two phases, and in one of them there was the arrest of the supposed hidden partner of the contractor, businessman Eduardo José Barros Costa, who was later released.

In this PF investigation, Construservice is also suspected of having paid bribes of BRL 250,000 to the then manager of the state-owned company Julimar Alves da Silva Filho, who was removed from his public office.

Questioned in October about the alleged cartel, Codevasf said that “the institution’s bidding procedures are carried out in accordance with applicable laws, through the federal government procurement portal, and are open to the free participation of companies across the country”.

The company Engefort denies that it led a cartel to rig Codevasf bids.

“Engefort Construtora vehemently repudiates the notes that it participated in a cartel, since it never agreed prices with competing companies and never acted to rig any bid”, said the company.

He also stated that he is not responsible for other companies nor “can be held responsible for their participation in public events”.

Father of Juscelino Filho and former mayor of Vitorino, Freire Juscelino Rezende also accompanied an Engefort representative to a meeting with the then head of the state’s 8th superintendence, João Francisco Braga, in 2020.

In a note, the Ministry of Communications said that Juscelino Filho “was in several meetings at Codevasf and in several other bodies, as is his role and duty to act in favor of his region”.

The City Hall of Vitorino Freire stated that all works followed the legislation. “Through these funds [de emendas] We have invested in substantial improvements in the municipality, bringing quality of life to citizens and ensuring the socioeconomic development of the city. All the works carried out followed the legal rules”, said the municipal government.