Gaeco operation targets million-dollar contracts without bidding in Coxim city hall
Gaeco conducted search and seizure operations in Coxim related to million-dollar contracts awarded without bidding by the city to a law firm.
On Thursday morning, the Special Action Group to Combat Organized Crime (Gaeco) executed search and seizure warrants in both Campo Grande and Coxim as part of "Operation Lucro Certo." This operation stems from an investigation regarding substantial contracts awarded by the Coxim city hall to a law firm without following the bidding process. Allegedly, the contracts, which were executed during the years 2021, 2022, and 2023, amounted to approximately R$1.5 million, despite the firm not having provided any actual legal services to justify the payments.
The investigation led by the Public Ministry of Mato Grosso do Sul (MPMS) suggests that the primary purpose of these contracts was to recover funds from the Tax on Circulation of Goods and Services (ICMS), which the municipality was entitled to as part of its tax revenue sharing. The law firm was supposed to receive a commission based on the amount successfully recovered through their efforts. This raises concerns about the legality of the contracts and the potential misuse of public funds by municipal officials, emphasizing the importance of oversight on public spending.
The ramifications of this investigation could be significant for the local government, as it underscores the need for transparency and accountability in public contracts. Officials involved may face legal repercussions if found complicit in bypassing the bidding process. The case also sheds light on broader issues of governance and corruption within municipal administrations in Brazil, which have been under scrutiny for various malpractices in public procurement.