Operation investigates embezzlement of healthcare funds in Rio.
Civil police officers and representatives from the Public Prosecutor's Office of Rio de Janeiro carried out two arrest warrants against individuals accused of embezzling funds from the municipal public health system; the scheme involved contracts signed between the Municipality of Rio and the Bio-Rio Foundation; according to the Public Prosecutor's Office, the total amount embezzled exceeded R$ 6 million over two years.
By Vitor Abdala/Agência Brasil - Civil police officers and representatives of the Public Ministry (MP) of Rio de Janeiro today (6) carried out two arrest warrants against those accused of diverting resources from municipal public health. Simone Amaral da Silva Cruz and Luiz Eduardo Cruz were indicted for being part of a criminal organization involved in a scheme to divert funds from contracts signed between the Municipality of Rio and the Bio-Rio Foundation.
According to the Public Prosecutor's Office, the total amount embezzled exceeded R$ 6 million over two years. In total, ten people were indicted for participating in the scheme. On May 28, the Public Prosecutor's Office and the Civil Police had already executed 27 search and seizure warrants.
In the request for preventive detention, granted by the 41st Criminal Court, the Public Prosecutor's Office argues that the defendants used means that demonstrate an intention to conceal and destroy evidence.
The scheme
The contracts between the city hall and the Bio-Rio Foundation, totaling R$ 188,7 million, were signed between 2014 and 2015 and stipulated that the entity would be responsible for training programs for doctors in hospital units, without any profit for the foundation.
According to the investigations, the money was deposited into the foundation's accounts. Then, the funds were transferred to specific accounts for each agreement, as stipulated in the contracts.
Approximately R$ 6 million ended up being transferred back to a Bio-Rio account, to cover the foundation's own expenses. According to the Public Prosecutor's Office, these funds should have been used for the agreement with the municipality, instead of being used to fund the organization.
Among the accused, the fraud against public funds was actually called an "administration fee." According to the Rio de Janeiro Public Prosecutor's Office, there was nothing in the contract referring to "administration fees," and the defendants tried to disguise the illegal financial transactions with monthly accountings of the agreements, administrative expenses of the Bio-Rio Foundation headquarters, and expenses without proper documentation.