Government Cancels $41 Million in Contracts with Construction Company after Folha Article

Engefort had participated in a bidding process with a shell company; CODEVASF denies irregularities in contracts

The federal state-owned has ended contracts worth more than BRL 200 million ($41 million) of the Companhia de Desenvolvimento dos Vales do São Francisco and Parnaíba (CODEVASF) with the contractor Engefort since Folha started, in April this year, a series on the allocation of parliamentary amendments to the company, which is the champion in paving in the Jair Bolsonaro government (PL).

The reports showed that the construction company, which has already obtained contracts that exceed R$ 1 billion, dominates the competition in this area at CODEVASF and, in different bids, participated alone or in the company of a shell company registered in the name of the brother of its partners. The company won 53 out of 99 bids.

CODEVASF is a federal state-owned company handed over by Bolsonaro to the control of the center in exchange for political support.

The revoked contracts include the largest with the contractor, in the amount of R$62 million.

CODEVASF denies that the decision to terminate contracts is linked to the questions cited in the reports and states that there were no irregularities. Engefort claims to comply with the law.

Translated by Kiratiana Freelon

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