"Whistleblowing of the Final Judgment" in Brazil: 9 Ministers, 24 Senators, 39 Deputies and 3 Governors denounced in the Lava Jato Corruption Scandal

Photo: Fábio Rodrigues Pozzebom/Agência Brasil

The so-called “Whistleblowing of the Final Judgment” presented last Tuesday by high executives of the giant construction group Odebrecht is shaking Brazil. In response, Brazilian Supreme Court has opened corruption investigations into nine Ministries, three State Governments, 24 Senators, 39 Members of the Lower House and other elected officials totaling at least 108 politicians.

Edson Fachin, the leading Justice in the “Lava Jato” case (Petrobras corruption scandal), agreed to the investigations after accepting 83 different documents, presented by the Federal Prosecution Office based on plea bargain testimonies of 78 officials or former officials from the Latin America's largest construction group Odebrecht, which has admitted to a massive bribes network in Brazil and overseas.

The investigations refer to elected officials who under Brazilian law can only be judged by the Supreme Court. Former Presidents Lula da Silva and Dilma Rousseff are not included in the so called “Fachin’s List” since they no longer hold elected posts and are not entitled to the special status.

Likewise, current President Michel Temer has been excluded from the List since he enjoys “temporary immunity”, according to Justice Fachin, one of the eleven members which make up the Brazilian Supreme Court. While in office, Brazilian Presidents can't be charged for crimes not committed during theirs mandate.

The nine Ministers in the List are:

- Eliseu Padilha (Chief of Staff of the Presidency)

- Wellington Moreira Franco (Secretary-General of the Presidency);

- Gilberto Kassab (Minister of Science and Technology);

- Helder Barbalho (Minister National Integration);

- Aloysio Nunes (Minister of Foreign Relacions);

- Blairo Maggi (Minister of Agriculture);

- Bruno Araújo (Minister of Cities);

- Roberto Freire (Minister of Culture);

- Marcos Pereira (Minister of Industry and Foreign Trade).

The three State Governors reported are: Robinson Faria (from the State of Rio Grande de Norte), Tião Viana (State of Acre) and Renan Calheiros Filho (State of Alagoas).

The Speakers of the Senate, Eunicio Oliveira, and from the Lower House, Rodrigo Maia, are also in the “Fachin’s List”. Among the well known Senators are Aécio Neves – President of the Brazilian Social Democracy Party (PSDB), Temer's ally and the second most voted Presidential candidate in 2014 – and Romero Jucá, President of the Brazilian Democratic Movement Party (PMDB), the government party.

The plea bargain system which has enabled to open the web of corruption in the Brazilian political system, government suppliers and other companies obtained crucial information from Marcelo Odebrecht, President and heir of the Odebrecht construction group; Benedicto Júnior, ex-Head of Infrastructure; Alexandrino Alencar, Head of Institutional Relations; Cláudio Melo Filho, ex-Head of Institutional Relations; José Carvalho Filho, ex-Institutional Relations.

The most frequent crimes allegedly committed are passive and active corruption; money laundering; fraudulent bids; forming cartels and public documents forging.

Apparently, Attorney General Rodrigo Janot sent the Supreme Court last 14th March a total of 320 investigation requests, of which it declined competence on 211 since they did not involve elected or government officials, but were sent to ordinary courts.

When the news broke on Tuesday, a large amount of Deputies and Senators left the Congress in the middle of theirs legislative meetings. The Parliament became empty.

The investigation into nine Ministers, or nearly a third of the President's cabinet, poses a serious threat to Temer's efforts to pass deep austerity reforms that he says are needed to regain investor confidence and lift the economy out of its worst recession on record.  Chief of Staff Eliseu Padilha is one of the ministers under investigation. He’s an experienced politician considered key in negotiations with Congress to pass the administration's crucial pension and other reforms. Likewise ministers in crucial areas such as foreign affairs, trade and agriculture. Thus, the Austerity reforms could be softned or relaxed.

Replies

In a press conference, the house Speaker Rodrigo Maia (DEM) said “the whistleblowers' allegations will be proven wrong eventually.” “The case will be dropped. I trust justice and always will. The Prosecution Service and courts will do a good job, and Congress will do theirs—making laws. There's a separation of powers,” Maia said.

The PT deputies complained case was declassified before the accused “had the chance to know what the charges were,” and issued a statement saying they will prove their “innocence in the case.”

Ricardo Trípoli, the PSDB leader in the lower house, said the PSDB deputies trust justice and the institutions, and called for transparency in publicizing the case. “Declassification will enable the accused to enforce their full right to a fair hearing, so that truth prevails. However, the institutions' work should not bring the country to a standstill. There is a reform agenda pending in Congress that will be crucial in reviving the economy and creating jobs,” Trípoli said in a statement.

Deputy Baleia Rossi, the PMDB leader in the house, also spoke out in support for the Supreme Court's decision to declassify the case records, arguing that a full disclosure of the case is crucial to raise public awareness and ensure a fair trial with the accused having the opportunity to be heard.”

Source: Folha de S. Paulo, Mercopress Agency, Agência Brasil

Read More

Brazil's Senate Speaker suspended from Parliament during his trial for corruption

Brazil's Senate Speaker Renan Calheiros was suspended from duties by a Supreme Court judge this Monday, pending his trial where he faces corruption charges. The event constitutes another blow to President Michel Temer's Administration. The decision, made by Marco Aurélio Mello, Minister of Federal Supreme Court, was effective immediately, but needs to be confirmed by a majority of Judges on the Supreme Court bench.

An opposition party, "Rede Sustentabilidade", had called for the suspension, arguing that an official in line for Presidential succession - as the Senate Speaker is - could not hold his position while facing trial. The Supreme Court ordered Calheiros to face trial for alleged embezzlement last week. He has denied accusations for using public funds to make maintenance payments to a woman with whom he had a child. In a separate case, Calheiros is also among numerous top politicians including an ex-President and lawmakers accused of helping steal billions from state-owned oil firm Petrobras.

Protesters on Sunday held demonstrations demanding Calheiros' ouster, with a crowd in Brasilia chanting “Lock Renan up!” as they performed a mock funeral with a coffin inscribed “corruption.”
Calheiros had tried unsuccessfully last week to push through an urgent reform that would challenge judges' powers to investigate corruption.

Source: Congresso em Foco, Mercopress Agency

Read More

Uruguay admits that could give asylum to Brazilian politicians; Uruguayan press interprets announcement as a veiled message to Lula

President Tabaré Vázquez said on Monday that Uruguay recognizes the government of President Michel Temer, respects the decisions of Brazil emerging from its political situation and admitted considering giving asylum to Brazilian politicians, if contemplated under International Law.

 “It must be clear that Uruguay historically and in the framework of international relations recognizes governments, and Brazil now has a government which Uruguay has already recognized” said Vazquez on Monday talking with the media following a conference with Brazilian business people in Sao Paulo.

“Brazil is a very important country for Uruguay, from all points of view, including trade and investment, and thus it is in the interest of us to have the best of possible relations with the government of Brazil”, added the president.

“Brazil's domestic problems are addressed and solved by Brazil, and us, from outside are not entitled to any opinion on the matter. We don't want to intervene in domestic political problems of other countries”, insisted the Uruguayan leader in reference to the political situation Brazil is still going through, including a raft of corruption scandals.

Vazquez was cautious when referring to president Michel Temer and hardly mentioned him, but he also anticipated that if any Brazilian politician appeals for asylum in Uruguay, and the situation is contemplated by International Law, Uruguay will accept it and receive the person.

“I believe president Temer is a very kind and serious person, I talked with him for half an hour in New York...that's it”, said Vazquez and took no more questions on the matter.

In recent weeks there have been insistent rumors in Uruguay that ex president Lula da Silva, mentioned as a suspect in several corruption cases linked to Petrobras, and who this week faces a round of questionings, could be planning to take political refuge in Uruguay.

Several media recalled that one of Lula's sons who is a soccer coach is working for a Uruguayan football team with the purpose of “preparing” the asylum for the family, but his solicitors and the local team have strongly denied such possibility.

“Uruguay is a country of open arms”, underlined Vazquez without giving names, “whoever arrives in Uruguay to work, to live, to share, to respect our laws...is welcome”.

Vazquez concluded saying that, “as I have repeatedly stated, within the constitution and our legal system, all is accepted, but outside that framework, not an iota".

Source: Mercopress Agency

Read More

Former President of Brazil's Lower House who triggered fall of Rousseff is arrested; He promises a “tell-all book”.

The corruption-related arrest of a former top Brazilian lawmaker last Wednesday threatens to revive political turmoil and snap the momentum of a government economic reform campaign. Eduardo Cunha - former President of Brazil's Lower House - was taken into police custody last Wednesday on accusations of corruption and money laundering related to oil platform contracts with state-controlled Petrobras. He denies the accusations.

A controversial politician, Cunha initiated impeachment proceedings that resulted in the 31 August ouster of ex-President Rousseff. Weeks later, he was stripped of his mandate and associated judicial protection because of alleged ties to corruption. Cunha was already indicted in March on corruption and money laundering charges, and was arrested this week on risk of interference with ongoing investigations.

Cunha said last month he is working on a "tell-all impeachment book" and suggested that he may turn state witness in the ongoing Lava Jato corruption investigation. The probe, led by federal judge Sérgio Moro, has advanced mainly on information included in plea deals with business leaders and a few politicians.

A member of Brazil's ruling Democratic Movement Party (PMDB), Cunha's threats have loomed over Brasilia where major politicians from all parties face scrutiny.

President Michel Temer, Rousseff's former Vice President and the top PMDB politician, assumed leadership of a deeply divided Brazil faced with the difficult task of marshaling unpopular austerity and privatization measures through a fractious congress. Cunha's arrest and Temer's low approval rating risk upending the political support the president has managed to muster in recent weeks.

Temer has thrown his weight behind labor, pension and government spending reforms aimed at resuscitating the economy.

Promised oil sector reforms, including the opening of the country's sub-salt reserves to companies other than Petrobras, are advancing, but still face staunch opposition from oil workers and opposition lawmakers led by Lula's Workers Party (PT).

Temer has signaled his endorsement of oil sector reforms, but his credibility has been strained by his own party's involvement alongside the PT in a Petrobras kickback and bribery scheme that first came to light in 2014.

In his first weeks in office, Temer has embarked on road-shows in China, the US, India and Japan in an effort to rekindle investor interest.

Investors have responded, picking up major Petrobras assets and pushing up the local stock exchange. Oil companies are no exception to the growing optimism. Speaking at the Oil and Money conference in London today, Shell upstream director Andy Brown said the Brazil is on an “improving trend,” adding that new Petrobras chief executive Pedro Parente “is really delivering” although the situation remains “a bit volatile.”

Source: Mercopress Agency

Read More

Brazilian Supreme Court authorizes investigation on Temer's campaign funding

Brazilian Supreme Court judge, Teori Zavascki, has authorized a preliminary investigation into allegations from former Transpetro head Sergio Machado that President Michel Temer illegally solicited campaign money in 2012. Machado, who secured a plea deal after being implicated in the widely publicized Lava Jato scandal, said that Temer had asked for donations to benefit Sao Paulo's mayoral campaign for Gabriel Chalita.

Transpetro is a subsidiary of state-run oil company Petrobras at the center of a sprawling political kickback scheme.

Judge Teori Zavascki on Friday referred the case to Attorney General Rodrigo Janot, who should determine whether to open a case and formally investigate the president and other politicians based on findings in the preliminary probe.

Temer had denied any accusation he requested money for the campaign of Chalita, who was then a member of the president's political party, PMDB.

In his testimony, Machado said the campaign contribution was made legally by the engineering group Queiroz Galvão but resulted from a kickback on contracts with Petrobras.

Machado's plea deal would include the return of approximately US$23 million to public coffers and home detention for three years. Machado would be allowed to receive visits only from lawyers, medical professionals, and 27 close relatives and friends.

Temer took over the country's leadership almost a month ago after the Brazilian Senate voted to remove Dilma Rousseff from the presidency for practicing cosmetic accountancy, the practice of using public money to fund state or federal social programs without the approval of Congress.

According to various reports, independent auditors did not find Rousseff involved in breaking fiscal responsibility laws. But many of those who voted for her impeachment are being investigated.

Temer is also under investigation by Sao Paulo justice for similar charges related to financing electoral campaigns. As part of the political understanding with the congressional coalition that supports Temer, he will not be running for office in the 2018 presidential election.

Source: Mercopress Agency

Read More