Brazilian Federal Police are already investigating bribes totaling R$ 52 million in the São Paulo subway system.

Payments were allegedly made by companies such as Alstom, Bombardier, and Tejofran to consulting firms used to collect funds for PSDB (Brazilian Social Democracy Party) officials and politicians; implemented during Mario Covas's administration, the scheme allegedly continued under the governments of José Serra and Geraldo Alckmin; a key figure in the scheme, consultant Jorge Fagali Neto, had US$6,5 million frozen in Switzerland.

September 30, 2013, 08:50 PMUpdated May 27, 2019, 09:43 AM

Payments were allegedly made by companies such as Alstom, Bombardier, and Tejofran to consulting firms used to collect funds for PSDB officials and politicians; implemented during Mario Covas's administration, the scheme is believed to have continued under the governments of José Serra and Geraldo Alckmin; a key figure in the scheme, consultant Jorge Fagali Neto, had US$6,5 million frozen in Switzerland (Photo: Leonardo Attuch).

247 - The Federal Police are getting closer to uncovering the scheme to divert funds from the São Paulo subway system, which were used to finance PSDB political campaigns in São Paulo.

Reporting by journalists Flávio Ferreira, Mario Cesar Carvalho and José Ernesto Credendio (read hereThe report points to bribes of R$ 52 million, which were allegedly paid to consulting firms by companies involved in the train cartel.

According to the Federal Police, Alstom, Siemens, Bombardier, and Tejofran allegedly transferred these funds to companies linked to the Fagali brothers, campaign fundraisers for the PSDB party, to Robson Marinho, former Chief of Staff to Mário Covas, and Romeu Pinto Jr., another businessman connected to the PSDB.

One of the main targets of the investigation is the consulting firm MCA, owned by Pinto Jr., which received R$ 45,7 million from Alstom, in funds deposited in Brazil and Switzerland. After that, the money was either withdrawn in cash or moved through money launderers, without its final destination being identifiable. Other consulting firms under investigation are ENV and Acqua-Lux.

Another company mentioned in the cartel, Tejofran, which emerged during the Mario Covas administration, paid R$ 1,5 million to the consulting firm BJG, which was controlled by the former state secretary of transportation, José Fagali Neto. Close to José Serra, he has been under investigation since 2008, when payments of US$ 6,5 million in Switzerland were discovered – the funds are currently frozen by court order.

Attorney Belisário dos Santos Jr., who defends Fagali Neto, argues that he will be able to prove that he provided consulting services.