Company issued USD 163 million in false guarantees to government contractors and debtors

Private documents leaked by hacktivist group EterSec further expose the shady dealings of FIB Bank — the company which came under the scrutiny of the Senate Covid hearings committee for its role in the Covaxin corruption scandal. 

Controlled by lobbyist Marcos Tolentino, a personal friend of the government’s House whip Ricardo Barros, FIB Bank issued a BRL 80.7 million bond as guarantee for a BRL 1.6 billion (USD 300 million) contract between the Health Ministry and Precisa Medicamentos for 20 million coronavirus vaccines. The guarantor, however, has neither the capital nor the approval from the Central Bank to issue such a warrant.

An investigation by EterSec obtained by The Brazilian Report shows that the company issued 70 guarantees on behalf of private companies with debts or contracts with the Executive branch. Between 2017 and 2021, those documents amounted to BRL 858 million (USD 163 million), according to EterSec analysis. One such guarantee, worth BRL 23 million, was issued in June to another business controlled by Mr. Tolentino. 

As a result of an article published by The Brazilian Report that broke the news yesterday, the Senate’s Covid inquiry requested the suspension of all federal contracts with FIB Bank guarantees.

• #corruption
• #healthMinistry
• #publicSpending