Brazil prosecutors ask for respirator probe involving Rui Costa to return to Supreme Court

Brazil's Attorney General's Office (PGR) has urged the Superior Court of Justice (STJ) to return an investigation into former Bahia Governor Rui Costa's administration to the Supreme Federal Court (STF). The PGR contends that suspicions of criminal activity surrounding a R$ 48 million ($9.8 million USD) contract for COVID-19 respirators may extend to money laundering and asset concealment, potentially implicating Costa during his tenure as a federal minister.

The case stems from a 2020 contract signed by Costa, who was then governor of Bahia and president of the Northeast Consortium of Governors. The agreement was for the purchase of respiratory equipment from a company lacking the necessary import documentation. Costa authorized an advance payment, but the respirators were never delivered, and the funds remain unrecovered. The PGR noted that judicial seizures have only recovered less than 3.5% of the allegedly diverted funds.

Federal Police are reportedly finalizing inquiries into the destination of the missing money, with indications that the funds may have been converted into assets belonging to the investigated parties, including Rui Costa. Costa recently left his position as Minister of the Civil House to run for a Senate seat in Bahia.

The PGR's filing highlights that the alleged concealment of funds is an ongoing crime. "As long as the agent keeps the funds out of reach of the authorities, the conduct is renewed every day," the office stated. "The resources have not disappeared; they have been converted into assets that remain hidden and, according to all indications, persist hidden at the present time."

Furthermore, the PGR mentioned that Rui Costa has been implicated in the plea bargain agreements of the company's owners. These individuals reportedly claimed to have made payments to a lobbyist who presented himself as a friend of Costa and allegedly mediated the company's contract. The PGR asserts that Costa is under investigation for his political role in the contract, having approved a deal deemed detrimental to public interest while leading the Northeast Consortium.