Auditors: Brazil confederation accused of corruption
ByReuters
Updated 11/12/2014 at 21:53 GMT
Directors of the Brazilian Volleyball Confederation (CBV) paid friends and family about 30 million reais ($11.32 million) for questionable contracts between 2010 and 2013, a government investigation reported on Thursday.
The Brazilian flag is seen at the base of the statue of the Christ the Redeemer on top of Corcovado hill in Rio de Janeiro,
Image credit: AFP
Auditors from Brazil's Comptroller General's Office discovered that part of the performance bonus paid by the CBV's main sponsors, Banco do Brasil, was not distributed to athletes as promised while administration costs rose sharply.
"It was in exactly that context that the CBV hired companies (owned by) directors, ex-directors and their relatives," the report said.
Some of those increased administration costs went to two companies "that perhaps don't even exist," the Comptroller's report said. "The owners are sons-in-law of the confederation's ex-president Ary Graca."
Several other contracts were given to companies owned by former CBV employees or friends which did not even have offices, the report added.
Graca, who is now president of the International Volleyball Federation, could not immediately be reached for comment.
The CBV said it had already introduced new guidelines on ethical and responsible governance and has promised to look further into the findings.
It questioned the authenticity of two of the 13 allegedly suspicious contracts and said it would seek to recover the money paid out for the others.
Banco do Brasil, which gives 70 million reais (£16.8 million) to the sport annually, said in a statement on Thursday it had suspended all payments to the confederation and would only resume its sponsorship once it was satisfied proper action had been taken.
Volleyball is one of the most popular sports in Brazil after football and one at which it excels.
The men's team has won gold or silver at the last three Olympics and the women's team have claimed gold at the last two. Brazilian pairs have also stood out in beach volleyball.
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