Corruption at the World Cup teaches a lot about doing business in Brazil

The American newspaper Wall Street Journal ran a story on Tuesday, 27, stating that the construction of stadiums for the World Cup is delayed and were more expensive than the budget.

The text points out that Brazilians are famous for leaving things for the last minute – but even Brazilians are saying it went too far. At the same time, the author recalls, protests emerged criticizing the excessive waste of resources that could have been used to improve education, health and other public services.

Corruption and favoritism: same old problems
As an example, the final stage of the World Cup and renovated for R$ 1.3 billion of public money, private Maracanã still faces problems of when it was administered by the State. A survey by ESPN shows that chosen for the provision of services such as security, cleaning, orientation and barricades are companies linked to politicians from Rio de Janeiro state government or the Football Federation of Rio, Ferj. Companies that charge higher prices than the market, which explains in part the loss of R$ 46 million of the Consortium Maracanã, accumulated since the beginning of the private operations of the stadium.

– Among the suppliers listed on a report from ESPN Brazil, is Sunset Vigilância e Segurança (Surveillance and Security ) LTD. The company is headed by a person known as Colonel Fellipe, former chief of the security of ex – governor of Rio de Janeiro, Sérgio Cabral. The officer, who was Cabral’s right arm during the last four years, also runs a company that does the cleaning of the Maracanã, the Sunplus Sistemas de Serviço LTDA. As a reminder, the Maracanã was granted to the private sector by the former governor, in a controversial process that faced dozens of popular protests.

– Another visible case at the private Maracanã is the public orientation service. They spend the pre-game with megaphones in hand, around the stadium, offering aid to spectators. The contractor would be Entreter Festas e Eventos LTDA. One of the partners is the brother of Tio Carlos, a town hall councilor of Rio, a public paid function in Brazil.

– Surrounding the new Maracanã are scattered numerous barricades for separating and sorting queues. The company that provides the material would be Equiloc Rental and Services LTD. Two women would be the owners on the contract. One is married to a friend of the director of competitions at Ferj, Football Federation of the State of Rio de Janeiro.

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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.

Published by 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.