A political family that has long controlled two small municipalities in Alagoas is accused of using public education money for expenses unrelated to schools, including pesticides, tractor parts and materials for a private vaquejada arena, according to reporting by Folha de S.Paulo.
The newspaper says bank statements from Fundeb, Brazil’s main basic-education financing fund, more than 30 invoices and on-the-ground reporting point to at least R$6 million in questionable spending over five years. That is roughly USD 1.1 million at recent exchange rates.
What Folha Reported
The allegations center on Campo Grande and Olho D’Água Grande, neighboring towns about 160 km (100 miles) from Maceió, the capital of Alagoas. Folha reports that both are politically controlled by relatives of Arnaldo Higino, a local political boss first elected mayor of Campo Grande in 1992.
Campo Grande is now led by his nephew Teo Higino, of the Brazilian Socialist Party (PSB). Olho D’Água Grande is governed by Arnaldo Higino’s wife, Suzy Higino, of the Progressives (PP), who is serving a second term. Folha says it sought responses from the family, the city halls and local education departments by phone, email and in person beginning May 12, but received no answer.
According to Folha, the two towns paid for metal beams and roofing materials from education accounts on the same day in January and February. The newspaper says those materials matched work done at Parque de Vaquejada Evânio Higino, a private rodeo-style arena linked to the family, while a municipal school with the same family name had a damaged sports court that had been closed for at least two years.
Schools in Poor Condition
The alleged spending contrasts with conditions reported in local schools. Folha described rural schools with damaged roofs, unsafe walls, inadequate recreation areas and mixed-grade classes caused by shortages of teachers and space.
Teachers in Campo Grande told the newspaper that salaries have been frozen since 2024 and are about 50% below Brazil’s national teacher salary floor. One teacher, Edivânia de França, said she earns R$3,640 a month, below the national floor of R$5,130.63.
Folha also reported invoices for herbicides, silo tarps, gravel, Hilux tires and tractor parts paid with Fundeb money. One tractor-parts store in Arapiraca received about R$105,000 classified mostly as school transport maintenance, although the outlet reported that the store sells only tractor parts. The newspaper cited local accounts saying the tractors were used on family farms.
A construction company also received nearly R$5 million from the two municipalities’ Fundeb accounts since 2021, Folha reported. The newspaper said it found no education contract corresponding to those payments. The company’s owner declined to answer questions.
Wider Fundeb Scrutiny
The case fits a broader pattern of scrutiny over Fundeb spending. A separate report cited Brazil’s Office of the Comptroller General (CGU) as saying municipalities in 35 Brazilian cities inflated enrollment in adult education, known as EJA, to increase Fundeb transfers.
In Olho D’Água Grande, that separate CGU-linked reporting said officials declared 106 adult-education students at a school where residents said enrollment had never exceeded 30. It also reported deceased people appearing on student lists and estimated R$3 million in improper transfers to the municipality.
BR104 reported that prosecutors are separately examining suspected artificial enrollment growth in Olho D’Água Grande, but stressed that the matter remains at an initial stage and that no fraud or formal responsibility has yet been established. The outlet said the municipal education department did not respond before publication.
The Federal Fund for Education Development (FNDE), which handles federal education programs, told Folha that oversight belongs to control bodies. Folha said the Alagoas state audit court did not respond. In a separate national case, the Federal Police said in 2025 it was investigating alleged diversion of more than R$50 million from Fundeb in Maranhão and Piauí, underscoring the pressure on authorities to police how school money is spent.