Dive Brief:
- An audit performed by Brazil's top electoral court has found that campaign contributions from construction companies winning the most contracts in preparation for this summer's World Cup have risen significantly.
- For example, construction costs for Brasilia's new stadium have almost tripled from original estimates to $900 million. That would make it the second-most expensive soccer stadium in the entire world, despite the fact that Brasilia does not have a significant professional soccer team.
- After going through just 75% of the stadium's costs, the audit has already found $275 million in allegedly fraudulent costs. Campaign donations from the lead contractor for the stadium have risen 500 times over the previous election cycle, according to the audit.
Dive Insight:
Government officials blamed the corruption on auditors who are "trying to spoil the party."
"This report comes out just 100 days before the Cup? That's why I say they're trying to spoil the party," said Claudio Monteiro, head of the World Cup committee for Brasilia. "We're going to show how this report is off base."
But who's going to end up paying for the alleged mark-ups on construction costs? Taxpayers -- all of the funding for the Brasilia stadium comes from the region's budget.