Federal Police in Brazil investigates corruption linked to world-renowned Getulio Vargas Foundation

The Federal Police (PF) makes today (Nov. 17) action against corruption schemes, bid rigging, currency evasion, and money laundering involving the Getulio Vargas Foundation (FGV), a world-renowned private educational and research institution based in Rio de Janeiro.

Operation Sofisma is carrying out 29 search and seizure warrants issued by the 3rd Federal Criminal Court in Rio de Janeiro and São Paulo.

Sequestration orders and restraining orders were also issued.

According to the PF, the scheme involved federal and state agencies which hired FGV to dispense bidding.

The investigations, which began in 2019, show that there was overbilling of contracts.

The institution was used “to fabricate opinions that masked the misuse of purpose of various contracts, which resulted in the payment of bribes.”

“It was found that more than just issuing untruthful opinions that disguised the corruption of public agents, the entity overcharged contracts made by waiving the bidding process and was used to defraud bidding processes, covering up the illicit direct hiring of companies appointed by public agents, front companies created by its executives and providing, through payment of bribes, advantages to companies that competed in bids coordinated by it,” says a note released by the police.

The targets used companies based in what are considered tax havens, such as Switzerland, the Virgin Islands, and the Bahamas, to launder money and practice currency evasion.

Agência Brasil contacted FGV’s press office but has not yet received a reply.