Federal Police target Sóstenes's circle in new phase of operation on diverted parliamentary funds

Brazil's Federal Police have initiated a new phase of the "Rent a Car" operation, focusing on individuals connected to Congressman Sóstenes Cavalcante (PL-RJ), the leader of the PL party in the Chamber of Deputies. The operation, authorized by STF Minister Flávio Dino, is the third phase of an investigation into the alleged diversion of public funds from parliamentary quotas. While Cavalcante himself is not a direct target in this phase, the investigation centers on his close circle.

The probe seeks to uncover potential crimes including peculation (embezzlement of public funds), money laundering, procedural fraud, and criminal organization. Five search and seizure warrants were executed across the Federal District, Goiás, and Minas Gerais. According to the Federal Police, the investigation has uncovered indications of a possible scheme involving public officials, private individuals, and companies allegedly used to legitimize the movement of public resources. There are also suspicions of attempts to conceal or alter evidence, which could constitute procedural fraud.

This latest action follows previous searches conducted at an address linked to Cavalcante in late 2023, where approximately R$ 430,000 in cash were seized. At that time, Cavalcante asserted he was a victim of persecution due to his political stance and explained the cash as proceeds from a recent property sale, stating the buyer preferred to pay in cash and he had not yet deposited the funds due to work commitments.

Parliamentary quotas are monthly allowances provided to deputies to cover expenses related to their mandates, such as office rentals, airfare, and car hire. The police's suspicion in this ongoing investigation is that a car rental company, paid through these quotas, continued to receive funds even after its irregular dissolution. The investigation aims to thoroughly examine the flow and final destination of these diverted resources.