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A recent investigation undertaken by the Fantástico (Globo) online newspaper has illustrated growing evidence of corruption being undertaken by Brazilian non-governmental organisations administering the low income housing Minha Casa, Minha Vida (My House, My Life) programme.

With state authorisation, NGOs and cooperatives have been evidenced falsely qualifying, selecting, and allocating both projects as well as beneficiary families.  The fraudulent acts have been happening in the form of stating lesser income than what is realistically being earned and other profile modifications or circumventions to suit acceptability into the programme.

One project being managed by the Cooperative Housing of Residents of the Federal District and Surrounding Areas (Cooperativa Habitacional dos Moradores do Distrito Federal e Entorno) in Luziânia that had not been approved by the Caixa Econômica Federal nor fully legalised was seen negotiating with residents.  One registered client stated: “I did not fully declare my income because, if I did, it would be too expensive.  You have to make up things in order to get the best – for example, I stated that I had a wheelchair and needed to take a bus.”  Whilst been denied by the cooperative, an employee commented that to be a beneficiary of the programme it was necessary to pay R$ 4,500 – and whilst the allocation list was complete, people were being offered the opportunity to sell their units.  Another participant stated: “I will sell to clear some of my debts – after if I can get another housing unit I will do so as it will be an investment.”

In São Paulo, the Community Council for Education, Culture and Social Action (Conselho Comunitário de Educação, Cultura e Ação Social, CCECAS) has – since 2008 – been offering apartments on a plot in Itaquaquecetuba of which nothing has been approved by the Caixa Econômica Federal nor constructed.  The NGO was created by the regional green party president Ricardo Silva and evidence has been brought to light of units being allocated to family members with ex-employee reporting to the Fantástico newspaper: “I had to accept applicants that did not meet the Caixa criteria and effectively lie because, for example, the person was a relative.”  Another irregularity has been the priority of singles over families (the latter should be given more priority).

In the Poá municipality in São Paulo, the Conpoá NGO registered 200 residents for a project that has not been authorised as an entity under the Minha Casa, Minha Vida programme (each were required to pay a R$ 300 fee) – although president of the organisation (Roseli Sousa da Fonseca) has stated his intention to refund the fees paid.

Whilst the Brazilian Ministry of Cities has demanded explanations from the NGOs discovered and have promised to initiate an investigation, the superintendent of the Caixa Econômica Federal – Paulo José Galli – has admitted that it may be difficult to prove fraud, stating to Fantástico:  “we have no way of knowing if this is all true or false – we form a level of trust with entities that are responsible for documentation assuming their seriousness and honesty.”  According to public attorney Matheus Baraldi Magnani: “the state has no real control – the registration of families under Minha Casa, Minha Vida is never undertaken using objective criteria or filtering mechanisms which is effectively an invite for corruption – this is very serious. “