The French electricity company Alstom, with offices in Sao Paulo, paid public servants of this state Government to make contracts with the state-run electricity company (EPTE) during the state administration of Mario Covas.
Federal Police investigations revealed that the electricity company obtained a credit abroad of more than $32 million USD to buy equipment of the Alstom group.
The contract credit for millions was granted without a tender and it was possible thanks to the plan designed by the French entity to pay briberies for $20 million USD to at least 11 public servants of Sao Paulo, as a reward for the approval of the agreement.
The money was distributed first among people with companies abroad that had businesses with Alstom and then, those funds were transferred to those who finally received them, the Executive officials in Sao Paulo.
Police investigations said this illegal activity was carried out during the first half of 1998, under the state government of Covas and some of the accounts that received those funds belonged to Jorge Fagali Neto, who was at that time financial director of the Mail offices and there is evidence proving that he had free access to all the State secretaryships.