10/04/2017 | 8:50AM
The Brazilian Federal Police launched Operation Clear Waters (Águas Claras in the original), a probe into a public funds embezzlement scheme allocated to the Brazilian Water Sports Confederation (CBDA). Amounts are believed to total some $13 million. Four warrants were issued for preventive arrest, two for police questioning, and 16 for search and seizure in São Paulo and Rio de Janeiro. Three people were arrested and one is on the loose.
The crackdown was launched Thursday (Apr. 6) after complaints were filed by athletes, former athletes, and businesspeople in the field, the police declared. The investigators are working in collaboration with federal prosecutors and federal auditing officials.
“We found signs of a scheme whereby public funds were being embezzled through partnerships and misinterpreted legislation originally aimed at the promotion of sport,” the police note reads. The money earmarked for water sports is believed to have been fueled to the pockets of the investigated.
The funds were siphoned off under the Sports Incentive Law and the Agnelo Piva Law. The money is linked to Correios, Brazil's government-controlled postal service company and a major sponsor for sports. The police believe public bidding legislation was also violated.
Source: Agência Brasil