Operation removes ten public employees for contract fraud in RS

The vice-mayor of Santa Cruz do Sul (RS), Elstor Desbessell four City Hall secretaries and four other municipal employees were dismissed this Tuesday (14), suspected of fraud in tenders, embezzlement – ​​embezzlement of public values ​​carried out by public employees – and money laundering.

A councilor, five businessmen and their subordinates and six companies are also being investigated.

Operation Control, carried out by the Public Ministry of Rio Grande do Sul, aims to dismantle a criminal organization responsible for fraud that caused losses that could exceed R$47 million to public coffers.

There are 46 search and seizure warrants, blocking of assets and values ​​totaling more than R$47 million, payment of bail amounts of approximately R$1.4 million, unavailability of 28 vehicles and three vessels, kidnapping of ten properties, removal of public functions of ten agents and prohibition of six companies from contracting with public authorities.

One of the irregularities occurred in the renovation and paving works of the Santa Cruz do Sul International Race Track.

According to the Public Ministry of Rio Grande do Sul, the improvements were fraudulent and overpriced, in addition to being executed with poor quality, which would have put the safety of Stock Car Brasil stage drivers at risk in November 2022.

According to prosecutor João Beltrame, “there are signs of possible fraud and embezzlement in the renovation and paving of the international race track, with bidding targeting, overpricing and then even with unjustifiable contractual additions that increased the contractual value by more than R$3 million”.

He further stated that the suspects, even though they were aware that the paving material was of low quality and unsuitable for a racetrack, chose to use it. During the Stock Car stage in Santa Cruz do Sul in 2022, the asphalt crumbled and raised blocks.

Prosecutor André Dal Molin highlighted that two distinct nuclei make up this criminal organization.

According to an investigation by GAECO/Central, the political nucleus is headed by a councilor who has connections with companies through his work as a lawyer. There are also members of the Santa Cruz do Sul City Council who are being investigated.

The investigation also detected the existence of two business groups, which sometimes had the support of a member of a local business association. In addition to Santa Cruz do Sul, search and seizure warrants are also served in the cities of Lajeado, Estrela, Vera Cruz, Venâncio Aires, Mato Leitão and Santa Clara do Sul, all in the interior of Rio Grande do Sul.