# São Paulo public lighting contract fraud investigation

> Live situation record from CLSTR: https://clstr.news/situations/so-paulo-public-lighting-contract-fraud-investigation
> Updated: 2026-08-15T22:18:56.000Z. Sources: 4. Developments: 2.

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

The investigation, launched by the Public Ministry of São Paulo, focuses on an international bidding process intended for the modernization, expansion, and maintenance of the capital’s lighting network over a 20-year term. The asset freeze targets João Manoel da Costa Neto, president of SP Regula, along with former secretary Marcos Rodrigues Penido, former director Denise Maria Ayres de Abreu, and companies FM Rodrigues and CLD Construtora. 

While the court froze the assets, it rejected a request to remove Costa Neto from his position at SP Regula. Both SP Regula and the São Paulo City Hall have denied the allegations, maintaining that the contract was executed legally and remains under continuous oversight.

## Timeline

### 2026-08-15: São Paulo court freezes R$ 1 billion in assets over lighting contract fraud

The São Paulo Court of Justice froze R$ 1.026 billion in assets from officials and companies amid suspected fraud in a public lighting contract for the capital.

2 sources. https://clstr.news/cluster/so-paulo-court-freezes-r-1-billion-in-assets-over-lighting-contract-fraud

### 2026-08-10: Barra Velha court freezes assets over suspected bidding fraud

A court froze assets in Barra Velha, Brazil, following allegations of a 2019 bidding fraud involving municipal school sound services.

2 sources. https://clstr.news/cluster/barra-velha-court-freezes-assets-over-suspected-bidding-fraud

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Cite as: São Paulo public lighting contract fraud investigation. CLSTR, https://clstr.news/situations/so-paulo-public-lighting-contract-fraud-investigation