# Brazil public works and municipal corruption investigations

> Live situation record from CLSTR: https://clstr.news/situations/brazil-public-works-and-municipal-corruption-investigations
> Updated: 2026-10-21T19:14:00.000Z. Sources: 13. Developments: 2.

The Brazilian Federal Court of Accounts (TCU) identified serious irregularities in 15 out of 24 public works projects audited under the Fiscobras 2026 program. These projects, funded by the Lula administration, involve approximately R$ 6.1 billion in resources. A notable case involves the Teresina Metro in Piauí, where technical units recommended halting the project due to suspected overpricing and duplicate budget items, with potential losses estimated at R$ 40.72 million. While 14 other projects showed irregularities that do not necessarily prevent their continuation, the final decision regarding the suspension of the Teresina Metro remains subject to a specific court ruling. Notably, the audit of the Angra 3 Thermonuclear Power Plant was excluded from the Fiscobras 2026 list pending a decision on the project’s continuity by the National Energy Policy Council.

Simultaneously, authorities are investigating corruption at the municipal level. In Piauí, the State Public Ministry opened a civil inquiry into the Mayor of Jurema, Kaylanne Oliveira, regarding road maintenance procurement. The investigation focuses on discrepancies between contracted mechanized services and manual labor performed, as well as allegations that services began before formal contracts were concluded. In Pernambuco, the Federal Police launched Operation Check-out to investigate suspects accused of destroying evidence related to Operation Check-in, which targets a criminal organization suspected of embezzlement and contract fraud involving the Recife City Hall. This includes investigations into 2020 outsourcing contracts where a company received approximately R$ 25.8 million, partly through federal funding.

## Claims

- The TCU identified serious irregularities in 15 of 24 audited public works. (corroborated by 2 sources)
- The audited works involve approximately R$ 6.1 billion in resources. (corroborated by 2 sources)
- The Teresina Metro project faces a recommendation for suspension. (corroborated by 2 sources)
- Potential losses for the Teresina Metro are estimated at R$ 40.72 million. (corroborated by 2 sources)
- The federal government has invested about R$ 500 million in the Teresina Metro. (corroborated by 2 sources)
- The Angra 3 Thermonuclear Power Plant was excluded from the Fiscobras 2026 audit list. (single source)

## Timeline

### 2026-10-21: Brazilian authorities investigate municipal corruption and contract irregularities

Brazilian authorities are investigating municipal corruption in Jurema, involving contract irregularities, and in Recife, involving the destruction of evidence related to previous fraud probes.

2 sources. https://clstr.news/cluster/brazilian-authorities-investigate-municipal-corruption-and-contract-irregularities

### 2026-10-21: TCU identifies serious irregularities in 15 Brazilian public works

The Brazilian TCU found serious irregularities in 15 of 24 audited public works, including the Teresina Metro project, which faces a recommended suspension due to potential losses of R$ 40.72 million.

12 sources. https://clstr.news/cluster/brazils-tcu-identifies-irregularities-in-government-works

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Cite as: Brazil public works and municipal corruption investigations. CLSTR, https://clstr.news/situations/brazil-public-works-and-municipal-corruption-investigations