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CGU fines healthcare operator R$9 million for private shows by Jota Quest and Thiaguinho via Rouanet | Brazil


Grupo Notredame stated that the events were under the management of another board in a corporate organization reproduction

Published 04/19/2024 12:51

The Comptroller General of the Union (CGU) fined the healthcare operator Notredame Intermédica R$9.3 million for irregularities in the financial support for cultural events via the Rouanet Law. According to the author, the operator received illegal compensation to finance the projects, such as holding private shows for company employees to the detriment of events approved within the scope of Rouanet. The decision was published in the Official Gazette of the Union (DOU) on Wednesday, 17.

Among the irregularities identified by the CGU, there is a show by the band Jota Quest held at Notredame’s end-of-year celebration in 2015. The event was restricted to the operator’s employees and was paid for in spite of what was stipulated in the collaboration agreement signed via Rouanet .

Along the same lines, for the end-of-year celebration in 2016, a show by singer Thiaguinho was planned. The presentation never took place because, in June 2016, Operation Boca Livre was launched by the Federal Police (PF), which investigated similar irregularities and prevented the fraud from continuing. The CGU audit was carried out with elements collected by Boca Livre.

Notredame Intermédica, in a statement, stated that the investigation relates to “facts that occurred under the management of another board”. Two other companies, identified by the audit as intermediaries of the irregularity, were also fined by the CGU. Notredame must also publicize the decision in communication vehicles and on the company’s institutional website. The decision can be appealed and the operator will appeal.

How does the Rouanet Law work?

Rouanet is intended to finance cultural projects, but does not make direct government contributions to artists. What occurs is a system of mediation with the private sector: upon obtaining approval from Rouanet, the artist is authorized to look for companies interested in financing the project. The contribution can be made either by donation, without other compensation, or by sponsorship, obtaining, in exchange, advertising or products related to the event.

Another possible compensation for companies when financing projects via Rouanet is to deduct the amount transferred to the cultural project from their income tax declaration, in full or in part. The irregularity pointed out by the CGU indicates that Notredame deliberately signed financing terms with the aim of receiving more compensation, outside the provisions of the law.

Jota Quest and Thiaguinho

The auditors point out that the Notredame group companies paid R$715,000 for the “Jornada Instrumental” project, which included four classical music shows in a city in the interior of São Paulo. According to the CGU report, the intermediary company’s counterpart for Notredame to finance “Jornada Instrumental” was the holding of a Jota Quest show at the group’s end-of-year get-together.

Likewise, the “Musical Celebration” project, whose proposal included symphony orchestra shows, obtained R$296,000 from companies in the Notredame group. Thiaguinho’s show was planned as a counterpart to the financing, but was not carried out due to the measures initiated by the PF in June 2016.

Read the full Notredame Intermédica

“The company clarifies that the subject of decision 131 of the Comptroller General of the Union concerns facts that occurred in 2015, under the management of another board in a different corporate organization than the one established today. In view of the CGU’s decision, the company informs that will file an appeal.”

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