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Court of Audit finds irregularities in Mané Garrincha

Entity points fraudulent overbilling, duplicate payments and prices above market

Works of Mané Garrincha have irregularities, says TCDF (credit: Divulgation)
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Caroline Aguiar - Brasília
Posted on 20/04/2012 13:11 h
updated on 07/05/2012 15:26 h

The Federal District Court of Audit (TCDF) released a new report that points out irregularities in the reconstruction of the Estádio Nacional Mané Garrincha  for the 2014 World Cup.

The inspection is for the last quarter of 2011 and the damage to be avoided as much as R$ 10 million. The Federal District government has until May 2 to respond to the court.

Among the irregularities it is the measurement of inputs greater than necessary, prices above the market price, fraudulent overbilling, duplicate payment and delivery of services without the application of raw materials or use of it in quantities lower than anticipated.

The Federal District government (GDF) denies irregularities in the works. "GDF reiterates that the questions do not necessarily indicate irregularities, and that it is working to meet all requests of the court," it says in a statement.

TCDF report lists trucks, generators and cranes that are counted in more than one service, resulting in duplicate payments. Another example of irregularity is the inclusion in the budget of rails for the movement of cranes. However, the cranes used in the work are fixed.

Only the correction of the fraudulent overbilling in the purchase of concrete could reduce the value of the work by R$ 1,4 million. 

The audit also notes that the work was originally contracted for R$ 696,6 million. However, with the hiring of additives, this figure rose to R$671 million, not including the stadium coverage, lawn, chairs, screens and lighting.

Old failures
The inspection in the stadium is permanent, and some of the irregularities reported now such as duplicate payments and fraudulent overbilling had been detected before. In February, TCDF released a report covering the period from May 2010, when the work was initiated, to June 2011.

The new report provides some answers to the previous audit. Many of them were not admitted by the court, and others were partially admitted. 

Another TCDF’s complaint is the delay of Novacap (urbanizing company of Brasília) to answer the questions. The deadline was December 2011. Since then, the government asks for extension of the date and the court accepts the request.

The last extension was published in the Official Gazette of the Federal District on April 2, which delays the answer to May 2.

The irregularities in the bidding of the Light Rail Vehicle (LRV) also appear in the TCDF report. The court reiterates the Federal District Court of Justice confirmation that there was fraud in the bidding process (learn more).

The contract with the bid-winning company was canceled by the Court in December last year. Before that, the government had breached the contract because of the suspicions.

In a statement, GDF considers the report a common procedure and says that all questions will be answered within the specified period.

Check out the Federal District government statement in full

The Government of the Federal District states that the report published on the website of the Federal District Court of Audit, on this Wednesday (April 18), is a common procedure from that court, whose role is to oversee public works. The document, which shows signs of inconsistency, does not bring anything new compared to what was released in August last year.

All questions raised are being answered by the corresponding entities. The usual procedure is that the explanations are evaluated by the court plenary, which has not yet occurred. That is why some questions remain on the report, such as the LRV contract, which had been cancelled by Metro in October.

GDF reiterates that the questions do not necessarily indicate irregularities, and that it is working to answer all questions of the court.

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