[ 2014-01-11 ]

Protest against corruption takes place in Rio de Janeiro

World Cup protest threat as corruption bill hits £32bn
Brazil will lose as much as £32 billion to
corruption this year — a sum that could fuel
renewed social protests about the cost of the
World Cup.
According to a 2010 study by the Federation of
Industries of the State of São Paulo, corruption
across the country accounts for between 1.38 per
cent and 2.3 per cent of gross domestic product
(GDP) every year. Given that Brazil reported GDP
of £1.36 trillion in 2012, forecast to rise by
2.5 per cent this year, the country could be
facing a projected loss to corruption of between
£19 billion and £32 billion.
Corruption is largely generated by payoffs to
officials, particularly in the construction
sector, where zoning laws are ignored, or to
corporate tax officials bribed to reduce duties.
In a recent scandal, one São Paulo tax inspector
admitted that he and his colleagues received
weekly bags containing as much as £20,000 in
cash, which he spent on luxury holidays, wines and
prostitutes.
In the “Mensalão” (monthly payments) case in
2005, many senior aides and associates of the
former President, Luiz Inácio Lula da Silva, were
found guilty of spending £26 million to buy votes
in Congress.
Much of the anger that drove huge social protests
last year concerned the alleged corruption and
huge spending involved in building World Cup
stadiums, with healthcare, education and public
transport budgets losing out.
The business magazine Forbes said that if the
money lost to corruption had been invested in
public services, it would have doubled the number
of state hospital beds, housed 2.9 million
families, and provided santitation to 23 million
households not linked to the sewerage system.

Source - The Times(UK)

... go Back