The security director for the 2016 Olympic Games allegedly committed fraud when he occupied the same position during the Pan American Games held in Rio de Janeiro four years ago, says an AP report.
The report says that Luiz Fernando Correa spent 40 million reals ($20 million) in 2007 for the purchase of security equipment that a later investigation showed was worth 22 million reals ($11 million). Thus, he overbilled the government by 80 percent.
The report says that the prosecutor's office ordered the investigation because the purchase was made without comparing market prices, which is required by law for any government acquisition made without a bidding process.
The report says that Correa remains the head of security for the Rio Olympics.
Correa was also responsible during the Pan American Games for contracting services and buying the equipment needed to provide security for athletes and authorities at the event, the report said.
If Correa is found guilty, he will have to pay the government the amount overbilled.