Brazilian Federal Police conduct operation against bid-rigging scheme.

Nielmar de Oliveira, reporter for Agência Brasil - The Federal Police, with the support of the General Inspectorate of the Ministry of Finance, launched Operation Sphinx today (3). It aims to dismantle a gang that committed fraud in bidding processes, embezzlement of public funds, corruption and money laundering. The operation, which investigates irregularities in bidding processes at the Mint, is being carried out in conjunction with the Federal Public Prosecutor's Office.

According to information from the Federal Police, 25 federal agents and twelve employees of the General Inspectorate of the Ministry of Finance are carrying out two preventive arrest warrants and five search and seizure warrants in the offices and residences of members of the criminal group, which allegedly moved R$ 70 million in bribes, in São Paulo and Brasília.

Consultancy

The warrants were issued by the 8th Federal Criminal Court of Rio de Janeiro, and one of the targets is a consulting firm, whose name has not been revealed. The firm allegedly received approximately R$ 70 million from a company under investigation for bid-rigging at the Brazilian Mint.

"Investigations indicate that this firm received the money without providing any services in return, and allegedly served as a front to facilitate the payment of bribes to those involved in the scheme," the statement said.

Pretrial detention orders were issued against a tax auditor from the Federal Revenue Service and his wife, who were indicted and charged with crimes of active and passive corruption.

Operation Sphinx is an offshoot of Operation Vices, conducted by the Rio de Janeiro Anti-Corruption and Financial Crimes Division (Delecor), which last year executed search warrants at 23 addresses linked to the suspects, including offices in the headquarters building of the Federal Revenue Service in Brasília and at the Mint in Rio.