Audit finds 'gross errors' in respirator purchase, recommends rejection of Rui Costa's accounts

An audit by the state audit court of Bahia (TCE-BA) has identified "gross administrative errors" in the procurement of respirators during the COVID-19 pandemic, recommending the rejection of former Bahia governor Rui Costa's 2020 accounts for his management of the Northeast Consortium. The case is currently under review by the tribunal, with the final decision on the accounts resting with the Bahia Legislative Assembly.

Rui Costa, who left his position as Chief of Staff for President Lula's administration in April to run for the Senate, declined to comment on the audit report. His defense argued that the respirator purchase occurred under exceptional circumstances of a health emergency and a shortage of medical equipment. They also stated that the decision to contract Hempcare was made collectively by the governors and justified by a global scarcity of equipment caused by COVID-19, necessitating an advance payment.

The Northeast Consortium, established in 2020 by the governors of nine northeastern states to coordinate actions and make joint purchases, acquired the respirators from Hempcare Pharma Representações, a company specializing in cannabis-based products. The consortium made an advance payment of R$ 48.7 million, but the equipment was never delivered. The consortium subsequently pursued legal action to recover the funds, and the acquisition is under investigation by the Federal Police.

The TCE-BA audit report specifically points to "gross administrative errors in the management of public funds" by Rui Costa and the consortium's then-executive secretary, Carlos Gabas. Both are considered responsible for the purchase and could be required to return the R$ 48.7 million. Gabas's defense denied any wrongdoing or bad faith, citing structural limitations within the Northeast Consortium during its first year of operation and subsequent corrective measures.