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Prosecutors Raid Guarujá City Council in Vehicle-Rental Bid Probe

A state accounts court audit flagged irregularities in the contract execution, prompting today’s operation.

Overview

  • Operation Via Fracta is executing eight search-and-seizure warrants in Guarujá, São Bernardo do Campo and the city of São Paulo, including the Guarujá city council headquarters.
  • Prosecutors are investigating suspected fraud, overpricing and related crimes linked to an electronic bidding process for vehicles used by council members.
  • The inquiry began last year after a complaint to Gaeco alleged that related companies acted in concert with the then council president to steer the contract.
  • TCE-SP auditors reported multiple execution irregularities in the contract, corroborating the original complaint and reinforcing the probe.
  • Gaeco is leading the action with support from the Civil Police and TCE-SP, and authorities describe the investigation as ongoing without public disclosure of charges.