In a major development that has shaken the local political landscape, the Federal Public Ministry (MPF) has launched a formal investigation and issued an immediate order to freeze all expenditures linked to a controversial R$11.9 million agreement. The deal, signed between the São José do Rio Preto city government and the Santa Casa hospital in Casa Branca, was intended to fund a large-scale medical imaging campaign to clear patient backlogs.
The MPF's recommendation, issued on Tuesday, mandates that the administrator of the Santa Casa hospital halt any and all payments or transfers to third parties—including truck rental companies or service providers—using funds received from the city hall. The federal prosecutors have given the hospital a two-day deadline to report the steps it will take to comply with this directive. Failure to adhere to these instructions could result in personal liability for those responsible.
This federal action comes on the heels of intense scrutiny from the São José do Rio Preto City Council, which voted to establish a Special Inquiry Commission (CEI) to thoroughly examine the agreement. The commission was formed following allegations of serious irregularities, including the absence of a proper selection process or competitive bidding for the contract. The investigation will be led by a four-member panel of councilors.
The controversy has already triggered significant political fallout. The Municipal Health Secretary, Rubem Bottas, requested to be relieved of his duties on Monday due to the scandal. He has been replaced by Frederico Duarte, who will oversee an internal administrative inquiry. Furthermore, Mayor Fábio Cândido announced the cancellation of the agreement on the same day, citing "administrative caution and legal security" after the city's legal office identified unmet contractual requirements.
The city hall has also demanded the return of R$4.7 million that had been paid in advance to the hospital. The original agreement, announced in late April, was pitched as a solution to eliminate the city's queue for diagnostic imaging exams through a mobile health unit model. However, the deal quickly drew criticism for its lack of transparency and the hospital's questionable capacity to execute such a large project.
The federal civil inquiry, opened on May 1st, points to several red flags. Prosecutors cite the hospital's fragile financial state, a lack of technical and operational capacity to fulfill the contract's objectives, and the "atypical interposition of companies" in providing the services. The MPF has made it clear that this initial recommendation does not mark the end of its involvement, warning that further measures and potential accountability for public officials and other entities may follow.
Based on reporting from g1.