Volkswagen is Under Investigation for Diverting R$1 Million via the Rouanet Law

RIO DE JANEIRO, BRAZIL – Volkswagen do Brasil is being investigated for alleged irregularities, practiced between 2012 and 2013, in sponsorships under the National Program for Cultural Support (PRONAC), with resources obtained through the Rouanet Law — which grants tax reductions to companies investing in cultural activities and allocates funds to the sector.

The administrative proceeding was initiated last Wednesday, June 26th, by the Office of the Federal Comptroller General (CGU). Another company — Master Projetos Empreendimentos Culturais — is also a suspect.

Altogether, the amount raised was R$1 million (US$250,000) through the Rouanet Law to sponsor the Brasilidade Sinfônica project, between 2012 and 2013. “Volkswagen and Master may have reallocated money from the project for their benefit,” alleged the CGU.

The amount diverted will be ascertained within the scope of the Administrative Proceeding of Liability (PAR). The prior Ministry of Culture (MinC) rejected the project’s accounts.

The irregularities were also detected within the scope of Operation “Boca Livre” which aimed to uncover frauds from cultural projects proposed to the MinC and encouraged by the Rouanet Law, in the period from 2002 to 2014.