Power

Fraudulent guarantor for federal contracts to face charges in Brazil’s accounts court

A story published by The Brazilian Report last year sparked a federal investigation into phony guarantees, some of which involved contracts with the Health Ministry

federal Marcos Tolentino speaks before the Senate Covid inquiry committee, in September 2021. Photo: Edilson Rodrigues/SF/CC-BY 4.0
Marcos Tolentino speaks before the Senate Covid inquiry committee, in September 2021. Photo: Edilson Rodrigues/SF/CC-BY 4.0

Auditors from Brazil’s federal accounts court (TCU) have called on the tribunal to charge FIB Bank, which issued USD 163 million in false guarantees for public contractors and debtors — including a shady deal between the Health Ministry and Precisa Medicamentos to purchase Indian-made Covid vaccine Covaxin.

In a probe kicked off after an investigation from The Brazilian Report into the so-called “bank” — the Central Bank has not authorized the company to operate as a financial institution — auditors concluded that the firm committed bad faith litigation against the court while trying to “prove” that it owns...

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