Federal Police accuse former Mato Grosso governor of using a R$308 million telecom settlement to divert public funds

In August 2026, Brazil's Federal Police launched 'Operacao Heranca,' executing 25 search-and-seizure warrants across four states and freezing up to R$316 million in assets, alleging that a 2020-era R$308 million settlement between the Mato Grosso state government -- then led by governor Mauro Mendes -- and telecom company Oi over an ICMS tax dispute was used to divert public money through a chain of investment funds and intermediary companies, with the fund manager also administering investments tied to the governor's family. The Supreme Court authorized the asset freeze and the breaking of banking and tax secrecy for those investigated.