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 The latest affair to rock the Brazilian republic, involving more than 100 congressmen charged with accepting kickbacks in exchange for getting the purchase of ambulances in the Federal budget, is no amateur scheme. Dubbed the Ambulances Mafia or the Escândalo dos Sanguessugas (Leeches Scandal), the case is an intricate and elaborate piece of trickery and deceit.
The pieces of the puzzle are still not all in place, but the revelations that have already come to light are enough to give us an outline of this new Brazilian corruption primer. Just last Friday, July 28, the vice-president of the CPI dos Sanguessugas (the congressional inquiry on the case), House Representative Raul Jungmann, informed that the inquiring committee had already enough evidence against 80% of the 116 congressmen who have been charged of being part in the Ambulances scheme. That means that at least 90 representatives and senators could be expelled from Congress if they are found guilty of misconduct in this case. There were rumors that the CPI had evidence only against 30 legislators. "Whoever says that there are only 30 names is intent on turning on the pizza oven. (In Brazil, the expression to "end up in pizza" means to end up an investigation without finding or punishing the guilty.) I maintain the position that there is evidence against 80%. This can be proved by testimonies and other evidence presented." The latest information shows that Planam, the company that planned the whole corruption scheme, handed out at least US$ 5.9 million to representatives who helped to sell the overbilled ambulances. The revelation appeared in a testimony given the Federal Justice by Luiz Antonio Trevisan Vedoin, one of the owners of Planam. According to Vedoin, he spent US$ 2.4 million in cash and gifts to 80 representatives and 3 senators. Mayors from the cities where the ambulances were sent got another US$ 460,000 in kickbacks. But, in many cases, he says, he can't remember how much he paid politicians and their aides. Vedoin disclosed also that in some instances he made cash advances with the understanding that the legislator would present a favorable amendment in congress, but in some cases this amendment never happened. In his testimony, which lasted 9 days, the businessman who was heard by the Justice in the state of Mato Grosso, cited the name of 115 congressmen who had participated in the kickback scandal. The scheme, he says, was started in 1999 when Fernando Henrique Cardoso was the president and got stronger every passing year. Three other testimonies given by Darci Vedoin, Ronildo Pereira Medeiros, and Ivo Spínola, all accused of belonging to the Ambulance Mafia, confirmed Luiz Vedoin's revelations. Darci Vedoin, who is the father of Luiz Antonio and also co-owner of Planam, declared that 70% of Brazil's 513 representatives and 81 senators are corruptible and bribable. "There are many deputies and many senators - many - who are honest. But 70% of them use their post for one thing only: corruption," he said. The old Vedoin noted also that nothing has changed since the government stopped doing business with his company. The Health Ministry, he states, is buying an ambulance for US$ 56,000 (122,500 reais) while Planam charges US$ 46,000 for the same vehicle. Ronildo Medeiros, who owns Frontal, the firm accused of selling accessories for Planam's ambulances, declared that fraud didn't stop in Brazil since he and others involved with the Ambulances Mafia were arrested. "If we don't sell other people will do. This is so true that right now, with us out of loop, the same things keep going on." Corruption Primer The over a week long deposition by the younger Vedoin, was a true primer on how corruption works in the Brazilian public sector. He described in detail how the federal government, Congress and municipalities got involved in the scheme. Planam had a timid start back in 1999. Once in business they soon noticed how red tape made it very hard for cities to get money from Brasília to buy the ambulances they needed and Planam wanted to sell. Then the company started contacting congressmen one by one at the same time they approached mayors all over Brazil. The key to success, Planam would soon find out, was to offer little gifts, small monetary incentives, and promises of big kickbacks to congressmen willing to give the ambulance company business. Gifts weren't always that small. They included also cars and even buses. Representative Cabo Júlio, from Minas Gerais, for example, had 2,000 reais (a little over US$ 1,000) deposited into his bank account when he celebrated his birthday. There was money to pay for year-end parties too. Prostitutes were also plentiful as a tool to bend rules and get a congressman's helping hand. Curiously enough, these call girls were called éguas (mares) in the notes taken by those in charge of the scheme. Most of the meetings between Planam representatives and Brazil's House representatives happened inside the Congress building in Brasília. At the encounter the people's deputies discussed details on how the bidding for the ambulances would go so that one of the 18 companies owned by Planam and involved in the fraud would get the business. They also agreed on the size of the kickback: generally 10% over the value of the ambulance sold. For some hungrier legislators, 10% was not enough. Vedoin told that deputy Reinaldo Gripp, from Rio de Janeiro, wouldn't take less than 30%. There was no deal in that case. With few exceptions, said the businessman, all the legislators got a kickback, but this didn't always happen with the mayors. All of them, however, knew they were taking part on an illegal deal. The money for the kickbacks came from the overbilling. In order not to leave traces, the payments were in hard cash or in deposits to the checking accounts, of aides, relatives or third parties indicated by the congressmen. The money was paid in installments. The final portion being given when the city finally paid Planam. The way to pay the kickback varied depending on the beneficiary. Congressman Almir Moura, from the Rio de Janeiro PFL, for example, insisted to get his piece of the loot always in Cuca's restaurant, in Duque de Caxias, a Rio neighborhood. Members of the Mafia would sometimes contact small newspapers to guarantee that the tender announcement would be published, but just in a few copies so that the competition would not know about it. To speed up the release of the money they relied on people working in the executive branch of the government like Maria da Penha Lino, a Health Department's former-employee. In the Lula administration, they had well positioned PT (Workers Party) members like José Aírton Cirillo, candidate to the House by the state of Ceará and member of the PT's National Directorate. Planam followed the whole process very closely, taking care of the minutest details. To guarantee that they would win the tenders, the group paid compensations (US$ 1,000 to US$ 2,000 according to the testimony) to competitors. Or they pledged to present losing proposals in future tenders so that the competition could win.
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There is also the "Furnaces" corruption ! The "garbage collection" in which Paloci is involved.There is also the "Bingo" corruption.
And this is just to name a few.
In 73 % of all Brazilian municipalities, illegalities have been found !
Money is also regularly stolen visa corruption from the School lunch budgets !!!!!!
From 1999 to 2002,over 100 billions Reais was money laundered outside the country. A few money changers got long term jail terms . A report was issued. It was decided, on December 18, 2004, by the Senate....that NO investigation has to be open !
Simply because 91 politicians were named in the report !!!!!!!!!!!
In Brazil, corruption and red tape.....are in the blood and the genes of the citizens !
Nothing can be done....without paying an unoffficial and undeclared TAX.
Worse, money is stolen from the government money by those who govern the country !
The country is corrupted to the roots, at every and all levels of the society.