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A case study of systemic corruption in the state health bureaucracy

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Corona und Korruption

Abstract

In 2020, Rio de Janeiro’s governor Wilson Witzel, a former judge, was suspended on charges of malfeasance in state contracts to fight the coronavirus pandemic. Investigative procedures, recorded as text and video sources, comprise an unprecedented dataset that enable an empirical investigation of COVID-related corruption to be conducted. On the basis of this case study, we are asking what are the continuities and changes related to public procurement graft uncovered in Rio de Janeiro? Our findings provide further insight on the interplay between politicians and businesspeople around electoral financing as well as disputes between technical and political staff at the state's health secretariat, advancing a definition of systemic corruption.

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Notes

  1. 1.

    Apart from Rio de Janeiro, several Brazilian municipalities expanded access to health services by means of partnership with the Social Health Organizations (OSSs), entities of the third sector which provide services under management contracts made with the direct public administration, and which specify the objectives and targets to be achieved (Silva et al., 2016).

  2. 2.

    NOVO is a political party that stands unabashedly for liberal matters, such free markets, a minimal state, fiscal responsibility, equality before the law, less privileges for the elites, lower taxes and a focus on individual liberties.

  3. 3.

    Meaning targeting the competition to the benefit of one particular competitor.

  4. 4.

    All quotations from official documents are translated by the authors.

  5. 5.

    The businessman Mario Peixoto is suspected of controlling different organizations, among which Iabas that held public contracts with Rio’s government and also with other state entities like the city of Duque de Caxias.

  6. 6.

    The Office of the Federal Prosecutor of the Republic in Rio de Janeiro obtained an intercepted dialogue regarding the act of revocation of the disqualification of a Social Organization named UNIR SAÚDE, indicative of a possible illicit agreement between Mario Peixoto with Governor Wilson Witzel, since the governor granted the hierarchical appeal presented by the organization and revoked the SES/SECCG Ordinance SES/SECCG n. 664/2019, which disqualified the entity, on the ground of convenience and opportunity, demonstrating strong likelihood of the existence of adjustments for the embezzlement of public money (fls. 73/74).

  7. 7.

    Law 13.979/2020 does allow for a simplified term of reference, but it still requires (a) statement of the object; b) simplified justification for the contracting c) summarized description of the solution presented d) contracting requirements e) measurement and payment criteria; f) budget adequacy; and g) price estimates based on minimum parameters defined by law.

  8. 8.

    The COVID-19 procurement regulation authorized, exceptionally and with justification, the contracting of companies that have been declared ineligible or that have had their right to participate in bidding or contract with the government suspended, when it is shown that they are the only supplier of the goods or service to be acquired in question and they are related to the health crisis.

  9. 9.

    Carioca is the adjective used to designate the native inhabitants of Rio de Janeiro and things. Like the lyrics of the famous Bossa Nova song “Girl of Ipanema” that goes “She is carioca”.

  10. 10.

    Arrested governors of Rio de Janeiro in the last two decades: Wellington Moreira Franco, Anthony Garotinho, Rosinha Garotinho, Sérgio Cabral Filho, Luiz Fernando Pezão.

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Authors and Affiliations

  1. Max-Weber-Institut für Soziologie, Universität Heidelberg, Heidelberg, Germany

    Maria Eugenia Trombini, Mario H. Jorge Jr., Elizangela Valarini & Markus Pohlmann

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  1. Maria Eugenia Trombini
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  2. Mario H. Jorge Jr.
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Correspondence to Elizangela Valarini .

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  1. Medical School Berlin, Berlin, Deutschland

    Sebastian Wolf

  2. Institut für Sozialwissenschaften, Christian-Albrechts-Universität zu Kiel, Kiel, Deutschland

    Peter Graeff

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Trombini, M.E., Jorge, M.H., Valarini, E., Pohlmann, M. (2022). A case study of systemic corruption in the state health bureaucracy. In: Wolf, S., Graeff, P. (eds) Corona und Korruption. Springer VS, Wiesbaden. https://doi.org/10.1007/978-3-658-35664-4_6

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