Thirty executives from a dozen international companies were charged on Tuesday with price-fixing during the construction and maintenance of subway and train systems in São Paulo, Brasilia, Belo Horizonte, Porto Alegre and Rio de Janeiro. The companies named by the São Paulo State Prosecutor's Office include Siemens of Germany, CAF of Spain, and Alstom of France, among others.
Investigations into the allegations began last week, when Brazil's Conselho Administrativo de Defesa Econômica (Administrative Council for Economic Defense—CADE) accused the companies of forming a cartel to fix the prices of the construction projects. According to CADE, the 18 companies were involved in 15 projects valued at $4 billion from 1998 to 2013, with contracts in the Brazilian Federal District and the states of Rio de Janeiro, São Paulo, Minas Gerais and Rio Grande do Sul. According to CADE’s investigations, the companies allegedly prearranged prices through bidding and bribing officials to secure the contracts.
Bombardier and Siemens have said they will cooperate with the investigations. Brazilian judges still have to decide if they will accept the charges and bring the executives to trial. The companies named in the investigation will present their defense at an undisclosed date.
Two-thirds of the 345,000 remaining World Cup tickets were sold within three hours of the Fédération Internationale de Football Association (FIFA)’s final sales phase on Wednesday.
Tickets were made available for 60 of the 64 World Cup matches set to take place in June and July. The fastest selling tickets were to Brazil matches, followed by games for England, Germany, and the United States. Countries with the most purchases were Brazil (143,085), the United States (16,059), Australia (5,357), Colombia (4,574), and Argentina (3,800). Due to the influx of online customers, fans had to wait almost an hour in some cases to place their virtual purchases. Ticket sales will close on April 1 and a final round of last-minute ticket sales will open on April 15.
Prior to the final sales phase, 2.3 million of the total 3.3 million tickets had already been sold and distributed, including all tickets to the opening and closing matches in São Paulo and at Rio de Janeiro’s Maracana, as well as the semifinals.
Brazil passed the 100 days to the World Cup mark last Monday and currently is still awaiting final construction on three of its stadiums. The ninth World Cup stadium, Arena da Amazônia, was inaugurated on Sunday, leaving Itaquerão, the Arena Pantanal, and the Arena da Baixada stadiums in São Paulo, Cuiabá and Curitiba, respectively, to be finished.
When world leaders recently gathered in Switzerland to discuss the future of Syria last week, Brazil's foreign minister, Luiz Alberto Figueiredo, was in the northeastern city of Natal to participate in the inauguration ceremony of a soccer stadium. He had rejected an invitation to join the peace conference.
A day later, one of Brazil's major newspapers asked Figueiredo for an extensive interview focusing exclusively on the crisis in Syria, which would have allowed the new foreign minister to lay out Brazil's vision to the public. Once again, the minister declined the offer.
At the Munich Security Conference a week later, Brazil was the only large economy without a single participant. Figueiredo, who replaced the brilliant but hapless Antonio Patriota after a diplomatic crisis last year, has been strikingly invisible in the public debate.
President Dilma Rousseff is the main culprit. Obsessive in her drive to centralize decision-making, the president regards foreign policy as a minefield of little use in her bid for re-election. She has surrounded herself by uninspiring yes-men, at least one of whom—Education Minister Aloízio Mercadante—may actively undermine Itamaraty's standing in Brasília.
The Fédération Internationale de Football Association (International Federation of Association Football—FIFA) warned officials in the Brazilian city of Curitiba on Tuesday that it could be excluded as a host site of the 2014 World Cup if preparations remain behind schedule.
FIFA Secretary General Jerome Valcke said that renovation of the 43,000-capacity Arena da Baixada stadium is so far behind schedule that it represents an “emergency situation.” FIFA will decide on February 18 whether to keep Curitiba, the capital of Paraná state, as a host city. The Paraná state government and FIFA have pledged to invest an extra $17 million in the renovations to speed up progress.
Curitiba’s stadium is one of six venues in Brazil that missed FIFA’s December 31 deadline for completion and are still not tournament-ready. Arena da Baixada is scheduled to host its first World Cup match between Iran and Nigeria on June 16, as well as Spain vs. Australia, Honduras vs. Ecuador, and Algeria vs. Russia.
Brazilian President Dilma Rousseff defended the country’s preparedness for the World Cup earlier this month, saying via Twitter, “We love soccer, and that’s why we’ll host this Cup with pride and make it the Cup of Cups.” President Rousseff was responding to an interview with FIFA President Sepp Blatter published by the Swiss newspaper 24 Heures, in which Blatter claimed that the South American nation failed to begin preparations for the mega-tournament early enough.
The Brazilian state of Acre has asked the government to temporarily close the Brazil-Peru border to control Haitian migration. Acre’s secretary of justice and human rights, Nilson Mourão, said the levels of Haitian migration into the region are unsustainable and have strained the capacity of social services in the area.
Since the 7.0-magnitude earthquake that devastated Haiti in 2010, more than 15,000 Haitians have migrated into the Amazon region of Brazil through Brazil’s border with Peru in order to look for jobs.
Acre’s local government says it is not equipped to receive the new migrants, who have overcrowded shelters as they await documentation. This month alone, the arrivals have tripled to between 70 and 80 a day, prompting Mourão’s request to temporarily close the border between the Peruvian town of Iñapari and the town of Assis in Brazil.
This is not the first crackdown on Haitian immigrants in Brazil. In 2012, Brazil restricted Haitian immigration after 4,000 Haitians crossed into the country through the Amazon. After granting 1,600 visas to incoming Haitians fleeing the devastation of the 2010 earthquake, the Brazilian government declared it would only grant 100 temporary work visas and 2,400 humanitarian visas to recent migrants. Hundreds of Haitians were stranded in Peru after the changes were implemented.
Four years after the earthquake in Haiti—which killed 220,000 people and left more than 1.5 million homeless—817,000 Haitians are still in need of humanitarian assistance and 172,000 still live in displacement camps.
On Monday, December 23, 2013, the United Nations General Assembly adopted a resolution establishing the International Decade for People of African Descent, which will run from January 1, 2015 to December 31, 2024. The aim will be to raise social consciousness in the fight against prejudice, intolerance, xenophobia, and racism.
The resolution follows a series of related efforts, including the General Assembly’s December 12, 1997 resolution, which convened the World Conference against Racism, Racial Discrimination, Xenophobia, and Related Intolerance, and the December 16, 2005 resolution, which guided the implementation of the Durban Declaration and Programme of Action.
Assembly representatives emphasized its importance. Verene Shepherd, chair of the Working Group of Experts on People of African Descent, stated that the “indigestible fishbone of slavery” continued to stick in the throat due to the persistence of its legacies. She added that the impact of slavery and colonialism were most obvious in the Americas and on the African content itself.
Responses from Brazilian representatives reinforced this perspective. Bruno Santos de Oliveira noted that the 2010 national census data indicated that “more than 100 million Brazilians, more than half the population, had declared themselves African descendants,” and that the country has the largest number of people of African descent outside of Africa. The Brazilian Delegation recalled that the country continues to face racism and intolerance inherited from its colonial past.
President Dilma Rousseff said yesterday that Brazil will successfully host the 2014 FIFA World Cup, despite construction delays at numerous stadiums.
“We love soccer, and that’s why we’ll host this Cup with pride and make it the Cup of Cups,”Rousseff said via Twitter, just days after the Swiss newspaper 24 Heures published an interview with FIFA President Sepp Blatter in which Blatter claimed that the South American nation failed to begin preparations for the mega-tournament early enough.
"[Brazil] is the country which is the furthest behind since I've been at FIFA, and moreover, it's the only one that had so much time—seven years—to prepare itself," Blatter said in the interview.
Four of the 12 stadiums have missed the December 31 construction deadline set by FIFA. Financial problems, worker safety issues and construction-site accidents—including three worker deaths last year—have exacerbated delays. FIFA has since extended the construction deadline to April 15, only weeks before the competition kicks off on June 12 in São Paulo.
The Brazilian government announced that it is not considering granting asylum to Edward Snowden, the former National Security Agency (NSA) contractor who is best known for leaking classified NSA documents.
The announcement comes after Snowden sent an “open letter to the people of Brazil” in which he offered to help conduct a Congressional probe into the NSA spying scandal. Brazil was outraged when details emerged that the U.S. was spying on Brazilian citizens, as well as Brazilian President Dilma Rousseff and the national oil giant Petrobras.
Snowden’s letter, which was posted online and published by the Brazilian newspaper Folha de São Paulo on Tuesday, did not qualify as an official request, a Brazilian government spokesman said.
A previous request for asylum, which was sent by Amnesty International on Snowden’s behalf in July, also went unanswered by the Brazilian government. Brazilian authorities said they would not respond to a “generic letter.” Snowden is currently living in Russia under temporary asylum set to expire in August.
Despite the national outrage that Foreign Minister Luiz Alberto Figueiredo called “an inadmissible and unacceptable violation of Brazilian sovereignty," and Rousseff’s cancellation of a state visit to the U.S. over the spying allegations, Brazilian local media later revealed that the Agência Brasileira de Inteligência (Brazilian Intelligence Agency—ABIN) had also spied on diplomatic allies, including the United States.
Three hundred construction workers went on strike in the Brazilian city of Manaus on Monday after a fellow worker, Marcleudo de Melo Ferreira, fell to his death on Saturday. The workers of the Arena Amazonia stadium have demanded better conditions, saying that the pressure to complete construction is affecting their safety. The Prosecutor’s Office has suspended work on the stadium until the contractor provides a detailed report on the safety conditions at the stadium.
With the stadium already behind schedule, laborers like de Melo Ferreira have been working 20 hours per day to ensure the completion of Arena Amazonia by the revised January 15 deadline. More than half of the 12 World Cup stadiums are facing delays in construction or repairs. In November, a crane collapsed killing two workers at the building site for Arena Corinthians in São Paulo, set to host the opening game on June 12. The accident delayed the stadium’s completion, now planned for mid-April. In total, five workers have died at World Cup stadium construction sites in Brazil thus far.
Workers in the city of Curitiba also went on strike last week in protest of late payment. The delays in building of venues and related worker deaths come at a time when many Brazilians are disapproving of the 3.5 billion being spent on preparing for the World Cup. In June, millions of Brazilians filled the streets in seven major cities in protest of misspending by the state, demanding better health care, education and public transport.
“Nations be spyin’, yo!”
That’s how Jon Stewart of The Daily Show recently summed up the ongoing-and-ever-expanding allegations that the U.S. National Security Agency spied on Brazil and other nations, a story to which Wikipedia now devotes more than 33,000 words and nearly 600 source references.
“All nations act in their own self-interest,” Stewart said on October 24, addressing those such as Brazilian President Dilma Rousseff who have responded with outrage to the allegations. “Don’t act like your s*** don’t stink, it does, and we know, because we have a super-secret program that goes through your s***.”
Stewart was more right than he knew.
This week in Brazil, local media revealed that the Agência Brasileira de Inteligência (Brazilian Intelligence Agency—ABIN) has spied on diplomatic allies including the United States—an embarrassing revelation for Rousseff, who in recent months has positioned herself as a champion of privacy rights and even canceled an official state visit this fall to the White House because she said the U.S. refused to swiftly end its spying program.
Awkward. But now, the revelations about Brazil’s spy program have sparked a reaction similar to Stewart’s.
“Brazil has an intelligence agency, so it is not big news that Brazil spies,” Rafael Alcadipani da Silveira, of the Rio de Janeiro think tank Fundação Getúlio Vargas, told me.
“Everybody spies,” agreed Christian Lohbauer, a political scientist at the Universidade de São Paulo (University of São Paulo—USP). If anything, he is now more annoyed at Brazil’s government for having used the issue to gain political points at home.
June 1: This AQ-Efecto Naím segment looks at sustainable cities in the hemisphere.