João Dias to the Federal Police: "Orlando Silva was the operator of the scheme"

In testimony given to the Federal Police last Wednesday, military police officer João Dias, who denounced the alleged corruption scheme in the Ministry of Sports, said that he was informed by third parties that half of the money diverted from agreements with NGOs linked to the PCdoB (Communist Party of Brazil) was destined for Minister Orlando Silva. "Part of the money received by the minister was for personal gain and part was to benefit the PCdoB," he stated. The testimony, which Grupo Estado had access to, lasted more than seven hours.

Dias did not present the promised videos, audios, and other evidence, claiming he will do so next Monday. However, he detailed what he alleges is a scheme of patronage and bribery that the PCdoB (Communist Party of Brazil) set up within the Ministry. According to the informant, at least four money deliveries were made to the Ministry's garage, and on one occasion, Silva was present and lowered his car window to speak with the delivery person. "It's highly unlikely that the minister didn't see the delivery of the money bags," he quipped.

When questioned by the officers interrogating him, the informant clarified that he "never saw the minister receiving any money bag." He said that "all the information provided about the collection and distribution of the funds raised was given by Célio (Soares), Toni Matos (former soccer player), and Michael (Vieira), in informal conversations." The three were allegedly operators of the scheme.

Dias reported that in 2004 he was approached by a top-level committee from the Ministry, headed by the general coordinator of the Sports Secretariat, Ralcilene Santiago, who proposed a partnership with the Second Time program, aimed at promoting sports and cultural activities among underprivileged students.

In return, the police officer would have to buy sports equipment from suppliers indicated by the scheme and would have to pay a 10 to 20% cut of the agreement's value to a law firm designated by the group. Half of the money collected from the toll charged to Dias and other NGOs, according to the whistleblower, would be destined for the structuring of the PCdoB (Communist Party of Brazil) in the Federal District.

The largest agreement was signed in 2005 with the Brasilia Kung Fu Federation, for R$ 2 million, plus R$ 400 in matching funds from Dias' NGO. But the police officer rebelled against the high toll fee, and that's when his problems began.

Scheme operator

The funds from the agreements, approximately R$ 3 million, were disbursed between 2006 and 2008, initially during the administration of Minister Agnelo Queiroz, now governor of the Federal District. However, the services were not provided, and Dias was eventually arrested in 2010 during Operation Shaolin by the Federal District Civil Police, accused of fraud. At the time, Orlando Silva was the executive secretary of the ministry. From 2008 onwards, when he was already minister, the police officer claims he began to be the target of audits and inspections.

Dias said he had several meetings with Orlando Silva. In the presence of witnesses, the minister allegedly instructed him to buy kimonos from the supplier Miguel Santos Souza, a sort of operations chief in the scheme to raise embezzled money through a network of front men.

According to him, there was "simulated price quotation" to give the appearance of legality to the fictitious purchases of the program. "Miguel Souza stated to the declarant that 50% of the profit obtained by the companies he operated through front men was destined for the structuring of the PCdoB in Brasília." He said he had heard several times from Ralcilene and other interlocutors that part of the money raised ended up in the minister's pocket. "I am certain that Orlando Silva was the (main) operator of this scheme," he stated.