Brazil's Federal Police launch Operation Reduto to probe bid fraud in Rondônia

On July 9, 2024, Brazil's Federal Police, together with the Controladoria‑Geral da União and the Public Ministry of Rondônia, launched Operation Reduto. The coordinated action executed 19 search and seizure warrants – nine in Ariquemes, eight in Porto Velho and two in Manaus – and two preventive arrest warrants in Ariquemes. Eleven public servants at the Rondônia Legislative Assembly were suspended and assets, including financial and crypto holdings, were blocked up to 9 million reais.

Investigators say the scheme involves a criminal association that used a Manaus‑based company with public contracts in Rondônia to fraudulently manipulate bidding processes and divert public funds. The alleged “rachadinha” operation allegedly funneled money through accounts of commissioned legislators' staff. Financial flows exceeding 9 million reais, deemed incompatible with the suspects' declared income, were identified. Additional raids in Manaus targeted a condominium in Ponta Negra and a mechanical workshop in Adrianópolis.

The operation aims to gather further evidence to deepen the investigation into fraud, embezzlement, money laundering and related crimes linked to public procurement in the state.