Brazil Probing Fraud at Olympic Sailing Bay Sewage Plants
- Rio de Janeiro will fail to make good on its water pledge
- Directors of utility Cedae could be held responsible
Dark sand stands as tidal water recede from a beach in which sewage spills into the waters of Guanabara bay in Rio de Janeiro, Feb. 13, 2016.
Photographer: Dado Galdieri/BloombergFederal police are investigating Rio de Janeiro’s state-run utility Cedae for allegations of fraud at its sewage treatment plants around the Guanabara Bay that will feature sailing competitions in the Summer Olympics, officials said.
Fifty-six federal police officers on Thursday carried out eight search and seizure operations in at least six sewage treatment centers, five of which are located around the bay. The actions were part of a yearlong probe that is targeting the water and sewage utility for pollution and possibly charging for services it isn’t adequately providing, which if proven would constitute fraud, Marcelo Prudente, the officer presiding over the investigation, told reporters in Rio.