Salvador city officials removed over alleged R$38 million fraud scheme

A Bahia court ordered the suspension of Luciano Sandes, the municipal secretary of Community Articulation and Neighborhood Mayors, and councilor George Carlos Reis Pereira (known as Gordinho da Favela) in Salvador. The decision follows a Ministry of Public Prosecution investigation that alleges the two were part of an organized criminal group that defrauded the municipality of about R$ 38.3 million through irregular contracts managed by the City Maintenance Secretariat (SEMAN) and the Urban Development Company (DESAL) over roughly a decade. The probe highlights an electronic bidding process in 2018 where the contract value rose from an expected R$ 8.9 million to R$ 15.2 million, a 60 % increase without technical justification.

Judge Martha Carneiro Terrin de Souza said Sandes' continued presence in his role could jeopardise evidence collection and pressure public servants. The Salvador city hall confirmed it will comply with the court order and will open an administrative procedure to assess any damage to public funds, stating: "A gestão municipal comunica, ainda, que irá abrir procedimento administrativo para avaliar se houve dano ao erário relacionado aos fatos investigados."