Amendments distributed by Lula in the pre-election year return to irrigate Codevasf’s coffers

The government of President Luiz Inácio Lula da Silva (PT) reinforced the use of the state-owned Codevasf to execute the amendments distributed to parliamentarians to vote in favor of themes considered priorities for the Palácio do Planalto, as was seen throughout 2023 during votes such as the tax reform and other economic proposals.

Just last year, the state-owned company – which constantly makes headlines due to suspected irregularities – received R$5.3 billion from around 570 tenders launched, according to an investigation by the Newspaper published this Tuesday (16). The release of such a figure occurred in a pre-election year to city halls and city councils, and will be reinforced in 2024 by the record reserve of R$48 billion in the budget.

Codevasf told People’s Gazette that “the budget allocated to the company by the Executive and Legislative Powers is executed in a transparent manner, with procedures that ensure savings and efficiency. Hiring is carried out under the supervision of an internal governance structure and in accordance with recommendations from supervisory and control bodies”, he stated.

The Presidency of the Republic was also contacted by the report and has not yet commented.

Of the more than R$5 billion in amendments used in the tenders, R$1.9 billion was allocated to paving and resurfacing works, activities that are not part of the state-owned company’s historical vocation for irrigation and water security projects in the Brazilian semi-arid region.

“The company’s operations are guided by its strategic planning, which lists the following lines of business: water security; irrigated agriculture; sustainable economy; structuring of cities; and regional planning and innovation. All Codevasf initiatives are aimed at meeting the demands of the population, municipalities and states located in its area of ​​​​operation”, said the company, contesting that it is focused only on the water area.

These tenders represent the first stage in the execution of parliamentary amendments, formalizing the acquisition of services and products by Codevasf. Subsequently, parliamentarians choose the works and products that will be financed by the resources, using the catalog created by the state-owned company to facilitate the allocation of funds.

According to the investigation, Codevasf has become a kind of store for politicians, where deputies and senators select the services and products they wish to finance in their political strongholds. They then send letters to the state company indicating the values ​​of the amendments, the services and products to be financed, and the city halls or entities benefiting.

Paving and resurfacing works lead investments, with emphasis on states such as Bahia, Minas Gerais, Pernambuco, Ceará, Maranhão, Alagoas and Amapá. In the latter, in particular, another investigation of the Sheet points out that senator Davi Alcolumbre’s substitute (União-AP), who chairs the Senate’s Constitution and Justice Committee (CCJ), won three Codevasf notices totaling R$ 86.5 million.

Most of these bids refer to “umbrella” contracts – or “price registration minutes” –, in which the winning company commits to closing a price without knowing exactly where and under what conditions the work will be carried out. This procedure is the target of criticism and investigations by members of the Federal Audit Court (TCU), the Federal Comptroller General (CGU) and the Federal Police.

In addition to paving, bids for the acquisition of trucks and vehicles, heavy machinery, tractors, agricultural implements, water reservoirs, construction of sports courts, artesian wells and bridges stand out, totaling more than R$3 billion in investments.