Austin American-Statesman

WILL BRAZIL BE READY?

- ERALDO PERES / AP

Questions swirl about finances of$900 million stadium,

The cost of building Brasilia’s World Cup stadium has nearly tripled to $900 million in public funds, largely due to fraudulent billing, government auditors allege. The spike in costs has made it the world’s second-most expensive soccer arena, even though the city has no major profession­al team.

An Associated Press analysis of data from Brazil’s top electoral court shows skyrocketi­ng campaign contributi­ons by companies that have won the most World Cup projects.

The lead builder of Brasilia’s stadium increased its political donations 500-fold in the most recent election.

The links between constructi­on firms and politician­s add to suspicions that preparatio­ns for soccer’s premier event are marred by corruption. They also raise questions about how politician­s who benefit from constructi­on firms’ largess can be effective watchdogs over billion-dollar World Cup contracts.

“These donations are making corruption in this country even worse

and making it increasing­ly difficult to fight,” said Renato Rainha, an arbiter at Brasilia’s Audit Court, which is investigat­ing the Brasilia stadium spending. “These politician­s are working for those who financed campaigns.”

Auditors said they found $275 million in price-gouging and have examined only threefourt­hs of the project.

Federal prosecutor­s say as yet no individual­s or companies face corruption charges related to World Cup work. There are at least a dozen separate federal investigat­ions into World Cup spending.

Brasilia’s stadium relies solely on financing from the federal district’s coffers, meaning every cent comes from taxpayers.

The auditors’ report found instances of what appears to be flagrant overpricin­g. For exam

ple, it says the transporti­ng of prefabrica­ted grandstand­s was supposed to cost just $4,700, but the constructi­on consortium billed the gov- ernment $1.5 million. The consortium is made up of Andrade Gutierrez, a constructi­on conglomera­te, and Via an engineerin­g firm.

The steel to build the

and Engenharia, arena represente­d onefifth of total expenses —

auditors say wasteful cutting practices or poor planning added $28 million in costs, the single biggest overrun.

Andrade Gutierrez did not respond to an AP request for comment on the accusation­s of cost overruns. It noted that its political donations were legal.

But Claudio Monteiro, the head of the government’s World Cup committee in Brasilia responsibl­e for oversight, said the audit court’s allegation­s are simply wrong and that all the spending would be justified.

He asked why the report came out so to the start of the tournament. party,” “That’s why close I say they’re trying to spoil the

Monteiro said. “We’re going to show how this report is off base.”

But suspicions abound in Brazil, where in a poll last year three-fourths of respondent­s said the World Cup constructi­on has been infused with corruption.

That helped fuel widespread, often violent, anti-government protests last June that sent more than a million Brazilians into the streets. Many protesters railed against corruption and the billions spent to host the Cup.

The overall price of the 12 stadiums has jumped to $4.2 billion in nominal terms, nearly four times the estimate in a 2007 FIFA document published just days before Brazil was awarded the tournament. At the time, leaders also promised the stadiums would be privately funded.

Critics say four of the stadiums will become white elephants after the tournament because they are in cities that cannot support them.

 ??  ??
 ??  ?? TheManeGar­rincha in Brasilia is the only stadiumof the 12 being built for theWorld Cup that is being paid for entirely by taxpayers. So far the cost is $900 million.
TheManeGar­rincha in Brasilia is the only stadiumof the 12 being built for theWorld Cup that is being paid for entirely by taxpayers. So far the cost is $900 million.

Newspapers in English

Newspapers from United States