Ex-Mayors Suspected of Corruption Scheme in Espírito Santo, Brazil

Posted on January 16, 2013 • Filed under: Brazil, Business, Corruption

On January 15, 2013, Folha Vitória reported that 24 people, including seven former mayors, were arrested and charged for their involvement in a massive corruption scheme across various towns in Espírito Santo, a state just to the northeast of Rio de Janeiro.  They were taken to Vitória, the state’s capital, where they were asked to testify.  These individuals are accused of a scheme in which public funds were diverted without formal bidding to a private company, CMS, which was commissioned to help collect tax debts.  The scheme is estimated to have defrauded taxpayers of nearly R$200 million.  Read Article

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