São Paulo's Jockey Club is under municipal investigation for suspected misuse of BR61.3m ($11.4m) received through a city preservation incentive, following findings that the funds covered expenses such as origami classes, sugar purchases and ambulances for horse-racing events.
The city's Department of Historical Heritage (DPH) identified "absolutely impertinent expenses" when reviewing how the club used resources granted under the Transfer of Building Rights program, which allows owners of protected properties to sell construction potential to developers in exchange for financing restoration and maintenance.
According to the DPH, the Jockey Club used notes that overlapped with federal Law Rouanet funding, alongside unrelated items such as restaurant bills and administrative costs.
The department rejected the club's accounting and referred the case to the city's Comptroller-General, which opened an audit. A separate parliamentary inquiry at the São Paulo City Council is also reviewing the matter.
In a statement, the club denied wrongdoing, saying all requested documentation was provided and reviewed by an independent auditor.
It claimed that all funds were used "exclusively for the preservation, conservation and maintenance of listed areas," while acknowledging an initial "spreadsheet error" that led to inclusion of unrelated items.
If irregularities are confirmed, the club could face fines and be required to reimburse the full amount.
The DPH has said that the submitted materials failed to demonstrate how the funds were applied to restoration work, noting that physical renovations appeared "timid compared with the money raised."
Meanwhile, the Jockey Club maintains that its conflict with City Hall is politically motivated, calling the audit "a nefarious attempt, driven by obscure interests and intense real estate speculation, to erase the equestrian and cultural tradition of the place."
The Jockey Club is already in a long legal dispute with São Paulo's city hall over more than BR842m in alleged unpaid taxes
