Police are currently investigating the Brazilian sports federations for allegedly pocketing Olympic investments worth some $9 million dollars.
These investments were reserved for Olympic athletes’ training, travel and overall preparation for the event. They are also are inspecting former sports minister Ricardo Leyser’s knowledge on the matter, yet he denied the allegations, Reuters reported.
The suspected embezzlement also includes funds meant for buying equipment and improving training sites for the Rio 2016 Olympics, which are scheduled to start on Aug. 5.
"We are investigating crimes of fraud in a public tender, embezzlement and criminal conspiracy," said Tawcio Muzzi, a top anti-corruption official for the federal police in Rio de Janeiro, according to Bangkok Post .
The probe is looking into twenty deals signed by local sports associations and a promotional firm called SB Marketing e Promocoes, which was hired by the sports ministry to acquire funds and manage Olympic grants. The marketing company denied any knowledge of the transgressions.
Irregularities were noted in the Brazilian taekwondo confederation, based on the sports ministry’s records. Out of the fifteen regional federations that were supposed to receive money for equipment, nine got a portion of the funds granted to the confederation.
This is quite a blow to Brazil, as the government vowed to invest around $310 million in Olympic preparation since 2013 to guarantee optimal success at home.
However, the host is standing on thin ice ahead of the 2016 Olympic Games, with recession, rising crime rates, health concerns, corruption and the pending presidential trial teaming up against a trouble-free sporting event.