In the Car Wash case, the major corruption schemes – constantly portrayed in the media as proof of the moral degradation of specific individuals and generally associated with the party in power – are shown for what they really are: a fundamental component of a sociopolitical system controlled not by corrupt civil servants but by the companies that corrupt them.
Nine such companies are currently under investigation: OAS, UTC, Queiroz Galvão, Odebrecht, Camargo Corrêa, Iesa, Galvão Engenharia, Mendes Junior, and Engevix. Altogether, they have R$ 59 billion in contracts with Petrobras.
In Rio de Janeiro alone, three companies (OAS, Camargo Corrêa and Odebrecht) are participating as associates in various consortia building the ten largest public works for the World Cup and the Olympics (Subway Line 4, Maracanã, Parque Olímpico, Transcarioca, Transolímpica, Porto Maravilha etc.) at a cost of R$ 30 billion.
They have contracts with governments of nearly every stripe and color. Some have partnered with government in the privatization of airports and other PAC projects, and some are working on the São Paulo subway, marred by a corruption scandal in which governor Geraldo Alckmin, who also received money from public works contractors for his campaign, is under investigation.
More recently, the state-owned Sabesp [BVMF:SBSP3] — has fessed up to delaying news about a looming water shortage in the state during the campaign season.
If it does not rain by November, there will be outages where now there seem to be discreet adjustments in the middle of the night, the morning paper says.
Both federal and state administrations have made extensive use of the PPP — public-private partnership — to organize Pharaonic undertakings. Is there something endemic about the model, that makes it risk-insensitive? Continue reading
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