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Brazil Panel Finds Irregularities In 63 Public Works Projects

September 30th, 2009

roadworksIn a report released Tuesday, Brazil’s Federal Auditing Board, or TCU, found “major irregularities” in 63 public works projects, recommending a complete halt to work at 41 sites and a partial halt at 22.

The report was filed by the TCU with the Joint Budget Committee of Brazil’s Congress. The committee will review the report and can order full or partial suspension of work at any of the sites reviewed by the TCU.

The TCU report is an annual affair. Last year, the panel reviewed 153 projects, finding irregularities in 48. This year, the TCU reviewed 219 projects.

This year’s report found irregularities including overcharging by suppliers, signing of contracts with sub-contractors without proper bidding procedures, unwarranted cost overruns and many others.

A number of major projects could face at least a partial halt in construction activities. These include a major expansion of facilities at Sao Paulo’s International Airport and modernization work at oil refineries in the northeastern state of Pernambuco and the southern state of Parana.

-By Tom Murphy, Dow Jones Newswire

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