Police investigate allegations of embezzlement of R$875 million in Cajamar (SP)

The Civil Police of São Paulo is investigating an alleged money embezzlement scheme in the Cajamar City Council, in Greater São Paulo, involving contracts totaling R$875 million.

The investigation was opened in August this year, after receiving complaints indicating suspicions of corruption in the administration of former mayor Danilo Juan (PSD), between 2020 and 2024, and the current one, Quan Berto (PSD) – both allies. (featured image).

According to the police, the information “points to the actions of a criminal group composed of public officials and businessmen, which would have benefited from public resources through various mechanisms of fraud and institutional corruption.”

to CapitalsDanilo Juan and the Cajamar City Council denied these accusations (read below). The former mayor is a prior candidate for state representative and Cowan was elected as his successor in 2024 with nearly 93% of the vote. He is married to media personality Nadia Haddad.

Suspicions under investigation

According to the police, one of the main areas investigated is the implementation of suspicious confiscations of property, with a value exceeding, according to the complaint, 165 million Brazilian reais.

Another core of the investigation concerns the alleged transfer of resources through entities linked to the municipality of Cajamar, which has a population of 93,000 and an annual budget of R$1.3 billion.

“During the analysis of complaints, other relevant points were identified, such as deposits linked to political support; shell companies with significant revenues; appointment of family members and allies in strategic positions; and possible money laundering mechanisms across entities,” the civilian police report, obtained by Reuters, said. Capitals.

According to the Secretariat of Public Security (SSP), the investigation is being carried out under judicial secrecy by the Specialized Sector for Combating Corruption, Organized Crime and Money Laundering, of the Franco da Rocha Police Station.

The police report stated that investigations had determined, on official grounds, the veracity of some of the facts contained in the complaint, which “follow a chronological sequence consistent with the elements discovered so far.”

According to the opinion of the Public Ministry of São Paulo (MPSP), “the scheme will include councilors, politicians from previous administrations, companies, friends, public agents and entities that benefit from the transferred resources.” Furthermore, according to the agency, “the total value of potential deviations added to the specific complaints will exceed R$875 million.”

Close bonds of friendship

According to the investigation, A2W Tecnologia Ltda, whose partner is a close friend of the former mayor of Cajamar, received more than R$33 million in commitments from the municipality for IT services. Relatives of the partners were also appointed to delegated positions in the city hall during the administration of Danilo Juan.

The police claim in the report that they confirmed the payments to the company. Furthermore, a luxury car shop, owned by the same owners as A2W, was identified as an alleged vehicle for money laundering, with the cars being owned and used by public agents, including Danilo’s brother Juan.

The complaint filed with the police also indicates that a civil servant, appointed in May 2022 as Deputy Secretary of Modernization, Technology and Innovation at Cajamar City Hall, was holding the position of “Technical Leader” at A2W Tecnologia, between February 2021 and June 2022. This indicates that at the time of appointment he was still at the company. As secretary, he signed the A2W’s Certificate of Technical Capacity.

The report questioned the technology company, but received no response. to Capitals Danilo Juan said that A2W has been operating in the market since 2008 and was contracted through regular tender for the supply and rental of computer equipment, including technology rooms in the municipal network.

The former mayor says: “The Audit Bureau analyzed the contract and considered it regular. The sum of the values over the years is used in the complaint in a distorted way to suggest a violation, which is not sustainable.”

Regarding the luxury car store owned by the same A2W owners, Joan says that “there is no evidence or document linking the municipality to the company’s alleged use of money laundering” and that any private acquisitions are personal business, not linked to public administration.

Family businesses

According to the complaint investigated by the Civil Police, the Cajamar City Council committed and contracted, without bidding or through agreed bids, more than R$50 million with companies owned by family members of former mayor Danilo Juan.
Only one of these companies, in the construction sector, was to receive R$47 million between 2021 and 2023, with Joan’s uncle and cousin as partners. According to the complaint, employees close to him were appointed to commission positions, linked to departments and sectors responsible for approving payments to companies.
Among these employees is a childhood friend of the former mayor, known as Miltinho, who has, at different times, been appointed to various positions in the city council.
The other candidate is Danilo Juan’s cousin, who also appointed his wife to the municipal administration.
The former mayor claims that these allegations are old and that they even led to the arrest of a former employee of former mayor Toniño Ribas, Joan’s political rival in Cajamar, on charges of extortion.
According to him, the construction company has been providing services to the municipality since 2003, “always by participating in regular tendering processes.”
The former mayor said: “During his administration, there were no direct contracts or exemptions from tenders with the aforementioned company. All materials obtained were used in public works with a proper certificate from the Infrastructure Secretariat, composed of a qualified technical staff.”
Regarding the appointed employees, Joan explained that they “never worked as inspectors or contractual managers for the aforementioned companies.” He added, “Inspection, material control, and contract management were exclusively the responsibility of the Infrastructure Secretariat, which consists of engineers and specialized technical teams.”

“Núcleo Barueri” and confiscation

According to the Civil Police, the complaints also reveal a potential monopoly of companies based in Baruiri, in Greater São Paulo, which would have benefited from public contracts from the City Council with a total value of R$206 million.

In this part of the complaint, at least four companies are named, two of which share the same partners, and both of which have addresses linked to the former mayor in Barori.

In the document, the investigators point out, as a “particularly serious” point, the appointment of an employee from one of the companies as a works inspector for the Kajamar City Council, “in a clear conflict of interest.” However, according to the complaint, despite the amounts committed, the contracted services could not be effectively implemented.

“During Danilo Juan’s term (2020-2024), the first contracts with companies in Barueri were scheduled to begin, as well as suspicious expropriations and the creation of companies such as Fortis Hamati. In 2024, the election year, resources were to be redirected to support local candidacies,” the police say.

Investigators also say in the document that, this year, with the election of Quan Berto, the same agents and contracts were maintained, including continued multimillion-dollar forfeitures with companies at the heart of the business.

In the opinion sent to the court, the Public Ministry also stated that the complaints referred to schemes involving the purchase and resale of City Hall properties at inflated prices, involving companies from the so-called “Barweri nucleus.”

In the documents, the name of Leandro Moret Arantes, the current Cajamar Municipal Secretary for Security, Defense and Mobility and a family member of Gil Arantes, the former mayor of Barueri, who was removed from office by the courts in 2015, after being convicted 13 times by the Public Ministry for crimes of liability and money laundering related to the expropriation of property in Barueri, was mentioned.

“According to reports, it has been listed (By Leandro Moritz Arantes) In local politics it would have happened during the administration of Danilo Juan, after he achieved the championship under the management of Cawan Berto. The simultaneous presence of Leandro in management and Barueri companies in public contracts reinforces the need for an in-depth investigation, the Civil Police report said.

to CapitalsArantes claimed to be distantly related to Gil Arantes, although he served in second-level positions during his administration in Baruori. He also said that he had nothing to do with the contracts, and that he had previously provided his clarifications in a statement to the police. It is also stated that the complaint “has no merit” and that it was submitted by political opponents of Danilo Juan.

In the report, Joan said the property acquisitions followed “strict legal procedures, with technical evaluation, conducted by a judicial expert, legal opinion and public allocation – mainly for the implementation of schools and infrastructure” and that the allegations lacked evidence.

What does Danilo Joan say?

In conversation with capitals, Danilo Juan denied the accusations being investigated and said that part of the allegations had already been archived by the courts. He claims that the motive behind the accusations is political and that opponents launched them because he is a pre-candidate for the position of state representative in next year’s elections.

The former mayor also said the person responsible for the allegations has an accomplice who has already served eight months in prison for extortion.

“The complaints were submitted by an opposition political group, made up of former employees of the administration of former Mayor Paola Ribas. In fact, one member of this group has already been arrested after trying to blackmail former Mayor Danilo Juan. The defeated candidate in the 2024 municipal elections, Toniño Ribas, is using the investigation he initiated for electoral purposes, including during political meetings,” reads a memo sent by the former mayor.

Joan also sent decisions from the state Court of Auditors (TCE) approving management accounts for the years 2019 to 2022. She also says she has not been the target of any litigation since leaving the city council at the end of 2024.

What Cajamar City Council says

The city of Cajamar also stated, in a memorandum, that “part of the aforementioned facts had previously been subject to analysis in previous proceedings, after they were archived by the Public Prosecution Office due to the absence of elements indicating violations.”

“It should be noted that the aforementioned procedure is currently in the investigation phase, without any formal accusation against public officials or former directors. All information provided stems from complaints received, and does not represent a conclusion or attribution of authorship on the part of the Civil Police or the Public Prosecutor’s Office.”

Mayor Quan Berto’s administration also says that “all recruitments, appointments and investments carried out by the municipal administration strictly follow current legislation and remain fully available to the monitoring bodies.”

“Finally, the municipality reaffirms its commitment to transparency, legality and institutional cooperation, and remains at the disposal of the competent authorities to provide all necessary clarifications.”