Rio de Janeiro investigates R$ 1.6 billion school contract fraud

Investigations by the Institutional Security Cabinet (GSI) in Rio de Janeiro suggest widespread fraud and cartel formation involving state school construction and service contracts. Officials estimate that up to R$ 1.6 billion in contracts within the State Secretariat of Education may be implicated, with suspicions that 95% of the 1,241 schools in the network were involved in irregular contracting processes.

Audits indicate that school directors had little autonomy in selecting contractors. Instead, they reportedly received pre-filled spreadsheets with price proposals, often leaving them with only one viable option due to competitors lacking proper documentation. This coincided with a massive surge in emergency spending without competitive bidding, which rose from R$ 56 million in 2018 to R$ 603.2 million in 2024.

The irregularities involve the misuse of decentralized public resources intended for emergency repairs. While these funds were meant to compensate for pandemic-related resource reductions, investigators claim they became a primary channel for embezzlement. Several contracts have been suspended for re-evaluation, and the State Court of Accounts (TCE-RJ) has been called to analyze the situation.