Government Auditors Link Corruption To Soaring Cost Of Brazil World Cup Stadium
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The cost of building the Mane Garrincha stadium in Brazil’s capital of Brasilia has nearly tripled from its initial estimate, said government auditors on Wednesday, blaming corrupt officials for a lack of oversight into construction firms.
According to Brasilia’s Audit Court, the top electoral court in the country, some $275 million in public funds was found to have been wasted due to price gouging by contractors – and their auditors have only examined three-fourths of the project.
The cost of building the Mane Garrincha stadium in Brazil’s capital of Brasilia has nearly tripled from its initial estimate, said government auditors on Wednesday, blaming corrupt officials for a lack of oversight into construction firms.
According to Brasilia’s Audit Court, the top electoral court in the country, some $275 million in public funds was found to have been wasted due to price gouging by contractors – and their auditors have only examined three-fourths of the project.
The cost of the Mane Garrincha stadium, which boasts 288 imposing concrete pillars holding aloft a high-tech self-cleaning roof, has now risen to nearly $900 million; and the stadium is set to be the world’s second-most expensive football arena, despite the city having no major professional team.
In a 140-page report, the Audit Court listed some dubious claims made by construction firms. In one instance, transportation costs was projected at just $4,700, but the actual bill came up to $1.5 million.
The report also claimed that the government had lost $16 million due to a five-month delay in the construction of the main part of the stadium. However, the government inexplicably failed to sanction the construction company, Andrade Gutierrez, who caused the delay.
Notably, the Audit Court said, the lead contractor behind the Mane Garrincha stadium had increased its political donations by nearly 500-fold during the most recent elections.
[quote]“These donations are making corruption in this country even worse and making it increasingly difficult to fight,” said Renato Rainha, an arbiter at the Audit Court, to the Associated Press. “These politicians are working for those who financed campaigns.”[/quote]In response, Claudio Monteiro, head of the government’s World Cup committee in Brasilia responsible for oversight, denied the audit court’s allegations and promised that all the spending would eventually be justified.
“This report comes out just 100 days before the Cup? That’s why I say they’re trying to spoil the party,” Monteiro said from his office outside the stadium. “We’re going to show how this report is off base.”
Federal prosecutors say as yet no individuals or companies face corruption charges related to World Cup works. There are at least a dozen separate federal investigations into World Cup spending.
Related: Brazil May Turn $280 Million World Cup Stadium Into Prisoner Centre
Related: Brazil Seeks To Calm World Cup Hyperinflation
Related: Brazil Government To Investigate Hotels For ‘Exorbitant’ World Cup Prices
The overall price of the Brazil’s World Cup stadiums has now jumped to $4.2 billion in nominal terms, nearly four times the estimate in a 2007 FIFA document.
Gil Castelo Branco, founder of the watchdog group Open Accounts that campaigns for transparency in government spending, said:
[quote]”Is there corruption in the Cup? Of course, without a doubt. Corruption goes where the money is, and in Brazil today, the big money is tied up in the Cup.”[/quote]
