The Federal Court of Accounts (TCU) estimates that corruption has cost the federal government R$48 billion
from 2003 to 2010. This doesn't count the cost to states or municipalities but
is
nonetheless probably a wildly optimistic appraisal.
Lots of monies are channelled to and through NGOs, some of which are quite
respectable. Most are not, however, and the funds disappear with impunity and
without
controls. Similarly, almost every application for a licence or public tender
runs the risk of being tainted, despite all manner of controls and the
appearance
of legality.
President Dilma Rousseff is making heroic efforts to cleanse the senior echelons of her administration
of corruption, but she is challenged at every step by established political
mores. On the eve of mammoth investments as the country prepares for the 2014
World
Soccer Cup and 2016 Olympic Games, the prospects are daunting indeed.
Much corruption is a product of the political spoils system, whereby certain
ministries 'belong' to political parties that control them entirely. Rousseff
has
so far preserved the system. Faced with scandals everywhere in her government
and
bowing to pressure from organised movements within the civil society, the
president decided to accelerate the preparation of legislation against money
laundering. A strongly worded comprehensive bill to that effect was approved on
25th
October in the Chamber of Deputies.
There is now a widespread revulsion against corruption, which should facilitate
passage of the bill in the Senate. Rousseff followed up on her measures to
fight
corruption on 31st October by decreeing a 30-day suspension and review of all
contracts with NGOs (many of which have proven to be fraudulent).
For more news and expert analysis about Brazil, please see Brazil Focus.
© 2011 Menas Associates