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Brazilian Companies Named in Connection with Embezzlement of R$ 180 Million from Culture Sector
06/29/2016 - 11h12
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WÁLTER NUNES
BELA MEGALE
GABRIELA SÁ PESSOA
GUILHERME GENESTRETI
RODOLFO VIANA
FROM SÃO PAULO
GUSTAVO URIBE
FROM BRASÍLIA
This Tuesday (28) the latest in a string of dramatic and revelatory probes exploded onto Brazil's consciousness: Operation Free Mouth.
The operation, unveiled by the Federal Police (PF), investigates massive embezzlement of federal resources for cultural projects approved by the Culture Ministry.
It appears the wayward disbursements were sanctioned for financial exemption by means of the Rouanet Law, a Brazilian ruling set up to encourage companies and citizens to invest in cultural institutions in order to help finance cultural projects.
Among those targeted in the investigation is the Bellini Cultural Group, active for 20 years in the market and acting now, the investigation suggests, as the main operator in the corruption scheme.
Also rumoured to be involved are legal firm Demarest and companies Scania, KPMG, Roldão, Intermédica, Cristalia Laboratory, Cem Stores, Cecil and Nycomed Pharmaceutical Products.
As this issue went to press Bellini had still refused to comment on its involvement. Those companies that did offer statements either deny any irregularities, or say they are "collaborating fully with the investigation" and are at the disposal of the authorities.
The accused parties face charges of criminal organisation, embezzlement, larceny, crimes against the tributary order (tax fraud) and criminal misrepresentation. Their punishments could tot up to 12 years in prison.
According to the Federal Police, those under investigation are guilty of failing to execute approved projects, overstating budgets, claiming expenses relating to fictional services and products and simulating and duplicating projects.
Operation Free Mouth revealed that Antonio Carlos Bellini Amorim, head of Bellini Cultural Group and one of the chief suspects in the investigation, used public resources to pay for the weddings of one of his children.
A lavish wedding party took place at the Jurerê Internacional beach, a luxury holiday destination in Florianopolis, in the South of Brazil.
According to Rodrigo de Campos Costa, Regional Delegate against organised crime, the Culture Ministry "is guilty of, at least, some grave fiscal error".
The Culture Minister for the interim government, Marcelo Calero, countered: "In many of the cases uncovered in Operation Free Mouth, the Rouanet Law was an effective and active method of governance."
Translated by GILLIAN SOPHIE HARRIS