24.03.2015 00:48 h

Brazil investigates German claim of Cup graft

Brazil said Monday it has ordered an investigation following allegations that the subsidiary of a German company paid bribes to officials in connection with World Cup contracts last year.

The justice ministry told AFP that Justice Minister Jose Eduardo Cardozo would examine some $6.5 million worth of contracts with German engineering firm Bilfinger involving alleged compliance violations.

Earlier, reports in Germany quoted Bilfinger as saying it was investigating possible violations of the Group's compliance regulations regarding orders for the supply of monitor walls and software for security control centres at several Brazilian sites.

The firm cited suspected bribery payments from employees of Bilfinger subsidiary Helmut Mauell to Brazilian public officials and employees of state companies.

According to the firm, initial suspicions have been substantiated but an investigation is continuing into the bid for software to monitor traffic flow at several venues.

The firm, indicating its compliance system met international standards, promised to take action if violations are officially confirmed.

Cardozo urged Bilfinger to facilitate "all elements pointing to possible irregularities" surrounding contracts under review.

Sesge, Brazil's secretariat for overseeing major events and an offshoot of the justice ministry, indicated Helmut Mauell won the contract following a tender process typically involving around ten firms.

Sesge secretary Andrei Rodrigues called for a police investigation.

Germany's Bild mass daily published the allegations Sunday.