Two Brazilian States Bypassed Biddings to Hire German Company Suspected of Bribery

03/27/2015 - 09h08

The governments of the states of Rio de Janeiro and Minas Gerais hired without bidding the German company Mauell, a subsidiary of Bilfinger in Brazil, to supply equipment to the Integrated Command and Control Centers (IACC) in two World Cup host cities.

Mauell is under investigation for alleged bribery payments made during the World Cup in Brazil, as revealed by the German newspaper "Bild" on Sunday (22).

Contracts for the purchase of videowalls - an equipament with multiple monitors used for inner city security - brought a profit of US$1.07 million (in the state of Rio de Janeiro) and US$179,000 (in the state of Minas Gerais) to the company.

Both agreements set out that the supply of equipment, according to the World Cup responsibility matrix, should only have been acquired by the Ministry of Justice.

In 2013, the federal government purchased videowalls at a trading, that were used in 12 World Cup host cities.

The agreement, which named Mauell as the winner of the bid, is worth US$7.6 million.

In 2012, however, the government of Rio signed a separate agreement with Mauell to supply this equipment.

The purchase was made without a competitive bidding "due to the unique technology of the videowall", according to the Rio Security Bureau.

At the trading promoted by the federal government, however, nine companies also offered videowalls and competed with Mauell.

The government of Minas Gerais held a similar trading, but only after the Ministry of Justice had authorized Mauell's hiring.

Translated by CRISTIANE COSTA LIMA

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