Another property fraud story in Brazil: slow justice and corruption make it risky to buy land in the country

The Acu Port in Rio.

The Brazilian entrepreneur Eike Batista and former governor of Rio de Janeiro Sérgio Cabral, both arrested at Operation Lava Jato, caused a loss of R$ 2 billion on expropriations for the Açu Port, in São João da Barra, north of the state of Rio. The information was released by a farmers’ group lawyer in a special report from SBT Rio on Monday, February 6th.

The lawyer filed a lawsuit against the state government, LLX – Eike’s former company – and Prumo Logística, which took over the venture after the businessman. Costa demands the return of the lands to their owners with a fair price payment as compensation. The action runs in secrecy of Justice. “This is the largest fraud in the history of the country practiced by someone, and they used a benefit from the STF which gives the expropriant the possibility of depositing what he thinks he owes by means of a report manufactured by themselves. In the case, the manufactured price was $ 0.25, “the lawyer added, adding that the value would be higher. “The official evaluation bring around R$ 25 to R$ 30 per square meter, which represents a loss. It’s more than a big deal, it’s a big hit,” he emphasized.

The state granted the lands to Eike through the Industrial Development Company of the State of Rio de Janeiro (Codin). The company has a mixed economy and is linked to the Secretary of Economic Development. The report also shows that if the calculations had been made based on the experts’ assessments, the entrepreneur would have had to pay more than the R$ 37 million. “LLX and Prumo incorporated their land into their assets as if they were theirs, but these lands were never paid,” the lawyer explained.

The Acu Port in Rio.

According to the ODia report, in courts, Eike was defended by the Andrade Fichtner office, which has as partner the former head of the Civil House of the government under the Cabral government, Regis Fichtner. As the SBT report shows, the office was hired in 2009. In addition, Sunset Vigilance does the Port’s security. It is the same company that was hired for security during the World Youth Day (WYD) and at Maracanã during the World Cup. The environmental licenses of Açu Port are also irregular. According to the report, the documents were awarded in record time by the National Institute of Environment (INEA). The small farmers also complain of non-payment of compensation after expropriation.

The Locals of Brazil had published in 2011 articles about Porto of Açu back in its heyday when it seemed like a good investment to buy land in that area. With both the entrepreneur and the ex-governor under arrest it’s uncertain what is going to happen to the region and to the port. The Açu Port had an initial depth of 21 meters, a superpier of 2.9 km long (already completed) that would allow the berthing of the largest ships in the world. Meanwhile, the state of Rio de Janeiro economy is in shambles and the country as well. It’s clear who causes the economic crisis of Brazil.

Source: O Dia.

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Joe Cloud
Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.