Fausta's Blog

American and Latin American Politics, Society, and Culture

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The beginner’s guide to Brazil corruption

The BBC has Brazil corruption scandals: All you need to know. It’s clearly not all you need to know, since not only are entire books being written on the subject, the Beeb forgot to mention that the Federal Police shut down the Lava Jato task force, for instance, and Odebrecht is almost a second thought.

But the article is OK as a beginner’s guide to Brazil corruption, the way comic books used to be an introduction to classic novels like, say, War and Peace.

I’ve been posting on Odebrecht and Lava Jato for years, but the extent of the corruption is such that by now it is safe to say that Brazil’s corruption is second to none.

If you can read Portuguese and have hours to spare, browse through O Globo’s Lava Jato section. It is an object lesson on the corruption big government brings about.

Cross-posted at WoW! Magazine.

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Ecuador: Odebrecht stoolie turns in tapes of meetings with officials

José Santos, Odebrecht’s top officer in Ecuador, has turned in to investigators videos of his meetings with government officials, according to Veja.

In exchange, he received the shortest sentence of all seventy-seven of the company’s informants.

Seventy-seven singing: Big enough for a symphonic chorus.

Santos’s tapes must be music to the ears of the investigators of the bribes-for-government contracts case(s) against Odebrecht.

Karina Martín reports,

So far, investigations into the Odebrecht case in Ecuador have led to the imprisonment of eight people, among them an uncle of re-elected Vice President Jorge Glas and the former Minister of Electricity Alecksey Mosquera.

General Comptroller Carlos Polit, who is currently outside the country, has been involved, but due to his position, he reportedly enjoys judicial privilege.

Ecuador’s lead prosecutor Carlos Baca alleges that “60 percent of the corruption plot arrived and went through Panamanian ports.”

Cross-posted at WoW! Magazine.

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Brazil: The heaters in the heaters

From Miami to Rio, via air,

Brazil seizes 60 assault rifles hidden in pool heaters

Police in Brazil have seized 60 assault rifles that had been smuggled from the US city of Miami in a shipment of swimming pool heaters.

The weapons, which included 45 AK-47 guns, were found at the cargo terminal at Rio de Janeiro’s Galeao International Airport.

Four people have been arrested, police said.
. . .
It is believed the guns could have been sold in Brazil for up to $1.5m (£1.1m) in total. Detectives are investigating an exporter in Miami, Globo newspaper reported without identifying them.

In other headlines:
J&F Investimentos, the holding company behind meatpacking giant JBS SA, agreed to pay roughly $3.2 billion in fines

The penalty outpaces the one levied against construction conglomerate Odebrecht last year as part of the same investigation.

The Associated Press reports J&F plans to pay the fine over a span of 25 years.

Yet this penalty is just one part of the plea deal; another component played out in a very public way earlier this month, when J&F co-owner Joesley Batista turned over a secret recording to prosecutors. That recording — which appears to show Temer condoning the payment of hush money to an imprisoned politician — leaked to media earlier this month, prompting protests in the streets and questions of whether Temer’s tenure could survive the scandal.

Temer insists he will remain in office.

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Brazil: Lula trial reveals ties with Chavez

As you may recall, Brazil’s former president Luiz Inácio Lula da Silva is on trial.

All sorts of things are coming out. For instance, Lula personally recruited

Mônica Moura and her husband João Santana, a couple whose marketing strategies helped keep Brazil’s leftist Workers’ Party in power for 13 years

for help in Venezuelan Hugo Chávez’s 2012 campaign. Current dictator Nicolás Maduro (emphasis added)

Mr. Maduro, then Venezuela’s foreign minister, personally handed Ms. Moura $11 million in cash in his Caracas office, she said in the testimony given in court to Brazilian prosecutors in exchange for a reduced sentence on corruption charges. Brazil’s two largest construction companies, Odebrecht SA and Andrade Gutierrez, which are under investigation in Brazil for allegedly paying bribes to Mr. da Silva, wired her an additional $9 million to an offshore account, Ms. Moura said.

As the article correctly points out,

Under Mr. Chávez, Odebrecht became the biggest contractor in Venezuela, receiving roughly $11 billion over 14 years for projects ranging from irrigation channels to airports.
. . .
Odebrecht admitted to paying $98 million in bribes in Venezuela.

Now

The heads of Odebrecht and Andrade Gutierrez, as well as Mr. Santana and Ms. Moura, are all in jail or confined to their homes after being convicted on corruption charges related to Car Wash.

And they’re willing to talk.

Will this have any effect on Venezuela’s deteriorating condition? I doubt it; but it will have repercussions in Brazil.

Stay tuned.

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Venezuela: Where democracy really dies in darkness

You may recall this,

Benjamin Weingarten writes about Where Democracy Really Does Die in Darkness. Obsessed with Trump, Western media ignore the march of authoritarianism around the world. Weingarten writes on Turkey and Hong Kong, and has this to say about Venezuela,

Another story that the media largely ignore is that of the collapse of Venezuela under socialism. The Left’s “May Day”—better titled Victims of Communism Day— came and went with barely a peep about the collapse of the once-vibrant Latin American nation under Hugo Chavez/Nicolás Maduro Stalinism. Just as Turkey is about to fall under the veil of Islamist tyranny, Venezuela is reaching the logical conclusion of Leftist tyranny. Thousands have been taking to the streets in protest. Citizens are going hungry in a country that was once the richest in the region. The government is seizing the assets of global corporations. Inflation is running at 280 percent. In a nation that had banned private gun ownership, Maduro is now planning to arm up to 400,000 loyalists to preserve some semblance of order. Central planning and other attacks on individual liberty and private property rights have turned Venezuela into another failed Communist experiment, leaving its people mired in violence, poverty, and misery.

You might think that the downfall of a nation in America’s hemisphere under democratically elected socialists might be subject to intense media coverage. You would be wrong. Could it be that the Left does not wish to report on the end results of its policies?

The Health Minister got the boot after

Ministry data published this week showed cases of infant mortality rose 30 per cent, maternal mortality 65 per cent and malaria shot up 76 per cent last year. There was also a jump in illnesses such as diphtheria and Zika.

But it’s free healthcare!

Russia, Russia: Russian Oil Deals Provide A Lifeline For Venezuela’s Embattled Maduro.
Russia plans to start supplying wheat to Venezuela this year.

Nicolás’s millions

In a document revealed by Brazil’s Federal Supreme Tribunal, the wife of Brazilian publicist Joao Santana, Mónica Moura, confessed that she received $11 million at the Venezuelan Foreign Ministry headquarters, directly from Nicolás’ hands when he was the Foreign Minister. The Santana-Moura partnership was the brains behind el finado’s last re-election campaign back in 2012: “Chávez, corazón del pueblo.”

As part of her plea bargain with Brazilian justice, Moura confessed under oath that Nicolás handed her $11 million in cash and still owed her $15 more million. Nicolás demanded Moura receive all payments for the campaign without declaring them, with some of the payments fronted Odebrecht and Andrade Gutierrez.

The protests continue,

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Brazil: Lula “ready to run” again next year

Part of the fun of following Latin American news is that they are stranger than fiction. For instance, I first came across this headline at Panam post: Former Brazilian President Lula “Prepared” To Run Again in 2018.

They, in turn, got it from El Nuevo Herald: Lula dice estar “preparado” a ser candidato presidencial en 2018.

I couldn’t believe my eyes.

So I checked Brazilian media, and, sure enough, Lula da Silva pronto para voltar a disputar a Presidência. Antigo presidente brasileiro diz que os seus “adversários estão muito nervosos”. [Lula da Silva ready to run for President. Former president says his “adversaries are very nervous.”]. In an interview with Radio Meio Norte, Lula declared,

“Quero dizer que, se necessário, se o Partido dos Trabalhadores (PT) precisar eu estou disposto a voltar a disputar para ser Presidente”
[my translation:] “I want to say, that, if necessary, if the “Partido dos Trabalhadores (Workers’ Party, or PT) needs me, I am ready to run for President”

In another interview (link in Portuguese), Lula looked back nostalgically to his years as president and sighed, “I think the country needs to find its way, to be happy again, to live democratically.”

Lula was indicted five times on corruption-related charges just last year alone. That doesn’t count the evidence presented in court this week, any new charges, or the indictments against his children, his wife, or his associates. As Sabrina Martín correctly points out,

Lula is under investigation in connection with the Lava Jato operation. One investigation is allegedly claims that payments were made for a former Petrobras director’s silence; another is for Operation Zelotes, a framework that favored companies that did not pay taxes, as well as an investigation into influence peddling, and finally for money laundering which allegedly included an apartment on the coast Of Sao Paulo as one of the inducements.

Likewise, Lula is accused of participating in the project of rerouting between 2% and 3% of the value of the contracts signed between state-owned Petrobras and the construction company Odebrecht.

Let’s hope the Brazilian people stay the course fighting corruption and don’t get Lula back on the campaign trail.

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Brazil: Marcelo Odebrecht paid Lula US$5 million in bribes


Former Odebrecht Organization CEO Marcelo Odebrecht (whose grandfather Norberto founded the company in 1944) presented Judge Sergio Moro documents showing payments totaling nearly US$5 million to Luiz Inácio Lula da Silva, reports Infobae (link in Spanish).

The payments were made in 2012-2013 through Dilma Rousseff’s right-hand man, Antonio Palocci, who is under trial.

Marcelo Odebrecht, who has been in jail since 2015, reportedly provided the documents in hope of a reduced sentence, according to Infobae.

The WSJ reports Brazil Supreme Court Authorizes Investigation of Top Government Officials in the Lava Jato investigation,

Justice Edson Fachin, who is overseeing cases in Brazil’s high court related to the country’s sprawling Operation Car Wash probe, has given permission for prosecutors to open investigations into at least eight ministers, the leaders of both houses of Congress, and more than 50 senators and federal deputies, according to a document from the court released Tuesday.

The Car Wash investigation, which centers on bid-rigging at the state-controlled oil company Petróleo Brasileiro SA, or Petrobras, has led to more than 100 convictions over the past three years and implicated some of the country’s most influential businessmen and politicians of all major parties.

If you are keeping count, in 2016 Lula was indicted five times on corruption-related charges.

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Colombia: Magdalena River dredging project suspended over Odebrecht

The project to make the Magdalena River in Colombia more navigable has been suspended:
Odebrecht Bribery Plea Muddies Colombia’s Big River Project. Channelization of Magdalena River stalled over corruption fears, thwarting country’s ambitious infrastructure plans

A string of gritty river towns along Colombia’s mightiest river have waited years for mounds of silt to be dredged from the waterway, a project that was supposed to start last year and bolster growth in Latin America’s fourth-largest economy.

But the $862-million contract to make 565 miles of the Magdalena River more navigable went mostly to Brazilian firm Odebrecht SA, whose explosive admission that it paid extensive bribes to land infrastructure projects led Colombian regulators last month to suspend the river works. That contract, which promised to triple river cargo, was the cornerstone of a now troubled $25-billion infrastructure initiative to build new highways, airports and ports that would modernize a country bedeviled by its rugged terrain.

The Odebrecht corruption investigation has tied up hundreds of infrastructure projects in the hemisphere: Odebrecht Mess Leaves Devastation Trail From Andes to Caribbean, among them

Peru’s grandest infrastructure project. The 1,025-kilometer (637-mile) Gasoducto Sur Peruano was meant to climb from Cuzco’s jungle gas fields to nearly 5,000 meters (16,405 feet) above sea level and then back down. Only 33 kilometers of pipe were in the ground before bribery allegations ended Odebrecht’s access to funds, prompting the government to terminate the contract last month.

Peru is particularly affected,

Nowhere is the scandal more damaging than in Peru where President Pedro Pablo Kuczynski is struggling to make good on his promise to boost growth by investing in infrastructure. Cancellation of Odebrecht’s pipeline contract set back a $70-billion infrastructure plan. Other projects have slowed under added scrutiny. Finance Minister Alfredo Thorne was forced to shave a percentage point off his growth forecast for 2017.

The BBC has a brief summary, Brazil’s Odebrecht corruption scandal

UPDATE
Trending at BadBlue.

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