São Paulo court freezes R$ 1 billion in assets over lighting contract fraud

The Court of Justice of São Paulo has ordered the freezing of approximately R$ 1.026 billion in assets belonging to public officials and private companies due to suspected fraud in a public lighting contract in the capital.

The freeze targets João Manoel da Costa Neto, president of SP Regula; former secretary Marcos Rodrigues Penido; and former director of the Department of Public Lighting (Ilume) Denise Maria Ayres de Abreu. Additionally, the assets of companies FM Rodrigues and CLD Construtora (which became Ilumina SP) are included in the decision.

The investigation, initiated by the Public Ministry of São Paulo, concerns an international bidding process for the modernization, expansion, and maintenance of the city's lighting network over a 20-year period. While the assets were frozen, the judge rejected the request to remove Costa Neto from his position at SP Regula. SP Regula and the São Paulo City Hall have denied the allegations, stating the contract was executed legally and is subject to continuous oversight.