BRASILIA: Brazilian environmental agents this week shut down schemes involving hundreds of companies the agents said were covering up illegal logging in the Amazon rainforest, according to government documents reviewed by Reuters.

The operation conducted by the main federal environmental enforcement agency Ibama provides a rare glimpse into how illegally cut Amazon wood is inserted into legal timber supply chains, using shell companies and faking shipments.

The enforcement operation is one of the most complete ever conducted by the environmental agency, because it caught so many of the people hiding behind or doing business with the shell companies, one Ibama agent told Reuters.

Ibama identified more than 220 companies and 21 logging concessions involved in various schemes disguising the origin of illegal wood, according to the documents seen by Reuters.

The environmental agency will place embargoes on the companies this week to prevent them from selling wood and will hand out more than 50 million reais ($8.76 million) in fines, the documents said.

Ibama has also passed on the findings to public prosecutors and police for further criminal investigation, the documents said.

Ibama did not respond to a request for comment.

The agency can issue administrative penalties like fines and embargoes but cannot make arrests or issue criminal charges. The companies and people involved can appeal the decisions with Ibama.

Under President Jair Bolsonaro, Brazil’s Amazon deforestation in 2021 surged to the highest level in 15 years, according to official government statistics.

Bolsonaro has rolled back environmental protections and sought to introduce more mining and farming to the Amazon, saying it is needed to alleviate poverty.

Brazil permits legal logging, handing out a limited number of concessions that allow only a proportion of trees to be cut in a specific area, and sets quotas capping the harvest.

Those quotas are given out as credits that then accompany the wood as it is sold and resold, certifying its legal origins until it is made into a “finished product” like furniture or flooring.

But under the schemes, companies were selling the credits without the wood, the documents said.

Buyers would then attach the woodless credits to illegally sourced wood with origins such as protected nature reserves or tribal lands.