Brazil justice authorizes probe on Rousseff, TV says

 Maria Pia Palermo and Guillermo Parra – Reuters, 08/16/2016

A Brazilian Federal Supreme Court justice has authorized the opening of an investigation into President Dilma Rousseff and her predecessor Luiz Inácio Lula da Silva for allegedly working to obstruct the course of a sweeping corruption probe, GloboNews news channel said on Tuesday.

According to GloboNews, Justice Teori Zavascki’s ruling has given Prosecutor General Rodrigo Janot permission to look for additional evidence that Rousseff sought to name Lula to a cabinet post to help him avoid prosecution. In June, Zavascki barred the use of some wiretaps that showed Rousseff and Lula negotiating the cabinet appointment.

The news channel, without saying how it obtained the information, also said Zavascki authorized the opening of separate investigations against Aloizio Mercadante and Jose Eduardo Cardozo, two former Rousseff ministers, for similar allegations.

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Having already failed, the Rio Olympics may now succeed

Paulo Sotero – The Financial Times, 07/25/2016

Desfile olímpico de alunos da rede municipal do Rio

A um ano dos Jogos Rio 2016, alunos e professores da rede municipal, participam de desfile olímpico no Parque Madureira, na zona norte da cidade (Tânia Rêgo/Agência Brasil)

Judging by media reports and official statements, this year’s Summer Olympics in Rio de Janeiro were a flop well before the August 5 opening ceremony. But if history is any guide, the games stand a reasonable chance of being seeing as satisfactory by the time the estimated 10,000 participating athletes return home. Whether it’s the Olympics in Athens, Beijing, London and Sochi or the soccer World Cup in South Africa and Brazil, a disaster-to-success reversal has been the standard narrative of all recent major global sporting events.

The Rio Olympics, the first to take place in South America, may yet turn out to be a special case. With the threat of a terrorist attack seen as a real possibility after the July 21 arrests of 10 Brazilians identified by local authorities as sympathisers of the so-called Islamic State, the only catastrophes that can be discarded are hurricanes, earthquakes and tsunamis, which are rare on the Atlantic coast of South America.

Most forms of man-made disaster, including pollution, pestilence, engineering failure, crime, massive corruption, recession and political meltdown have hit Rio and Brazil as city and country raced against the clock to make final preparation for the games. Ample and mostly fair coverage of bad news by the local press was, as expected, amplified by the international media.

The foul state of the waters in parts of Guanabara Bay and Lagoa Rodrigo de Freitas, where some of the nautical events are scheduled to take place, and the Zika virus epidemic, have led doctors from around the world to call for a suspension of the games. A few renowned Olympians said they would stay away. In June, Rio’s acting governor declared a state of “public calamity” in order to free $800m in federal funds urgently needed to complete public works connecting Olympic venues, finish construction of housing for athletes and pay late salaries to public servants, including policemen. To dramatise the situation, some police officers staged a demonstration at Rio’s international airport welcoming visitors to “hell”.

Although violence in general and violence against women have trended down in recent years, the group rape of a young woman and the invasion of a public hospital by a narco gang to free a traffic boss have kept crime in the headlines. In mid-June, Rio’s mayor, Eduardo Paes, said in an interview with CNN that Rio’s police, controlled by the state government and not by him, were doing a “terrible” job. A few days later he said, quite accurately, that “the Rio Olympics are a missed opportunity” for Brazil to showcase itself on the global stage as a rising power.

That is what former president Luiz Inácio Lula da Silva had in mind when he travelled to London in 2009 to lobby the International Olympic Committee to award this year’s games to Brazil. Today Lula is a diminished if not disgraced politician. He faces two federal criminal investigations and is manoeuvring to stay out of jail. In mid July, the former president was indicted by the attorney general for attempting to obstruct a federal investigation on a massive corruption scandal involving state oil giant Petrobras, which is headquartered in Rio. Exposed in 2014, the Petrobras case has added fuel to a governance crisis that has crippled Brazil’s public finances, compromised investors and public confidence in the economy and thrown the country into its worst recession in a century. Seen as the economic disaster’s architect, Lula’s successor and protégée, Dilma Rousseff, was suspended in April by the House of Representatives and will likely be removed from office at the conclusion of her impeachment trial in the Senate in the weeks following the Olympics closing ceremony.

The scandal led to the arrests of more than a hundred businesses executives, senior bureaucrats and shady political operatives. A slew of former and current elected officials are under investigation or have been indicted, among them a former speaker of the House of Representatives, the current president of the Senate, two dozen members of Congress and ministers appointed by both Rousseff and her former ally and vice-president, Michel Temer, who took office as acting president in May pending the resolution of the impeachment process.

Against this depressing backdrop, Brazilians are not exactly looking forward to hosting the world’s greatest sporting festival. Support for the games has dropped from 92 per cent in 2009 to less than half of that today. Among cariocas, as the 6.5m inhabitants of Rio are known, barely 40 per cent say they are interested in the games. Tens of thousands of Brazilians from other parts of the country who had planned to attend have opted out because of the economic crisis, which has left more than 11m people jobless. Likewise, the number of foreign visitors will probably be much lower than the half a million that were once expected in Rio during the Olympics.

Ironically, such abysmally low expectations may help create a positive perception once the games get under way. With a security apparatus of 85,000 in place, Rio will probably be one of the safest places on the planet in August – in the absence of a terrorist attack. The myriad problems facing Brazilians will not prevent them from welcoming visitors and making sure they enjoy the music, the dance, the beaches and the nightlife Rio offers in abundance. With the first signs of investors’ confidence on the horizon and economists predicting a return to economic growth in 2017, a disaster-free Olympics could even help the country restore some of its lost self-esteem and project virtues the Brazilian people and some of their institutions have displayed in the face of unprecedented crisis and chaos.

Such efforts could start with the show that will precede the opening ceremony and the parade of athletes marching behind their countries’ flags before the lighting of the Olympic torch. Stealing a page from the London Olympics, which opened with a memorable display on the UK’s challenges and achievements, producers could add a scene featuring cars of the Federal Police and actors representing federal law enforcement officers, prosecutors and judges to symbolise the country’s ongoing offensive against systemic corruption and the impunity of criminals in high places, which is supported by nine out of ten Brazilians. The scene would certainly be well received.

So should peaceful rallies that both sympathisers and critics of Rousseff say they will organise to amplify their views before international audiences watching the Olympics. Compared with the scenes of hatred and violence from around the world seen daily on television, the civil manner in which Brazilians have been demonstrating their frustrations and dealing with their differences has been quite refreshing. It should be celebrated along with the Olympians who will gather in Rio to, once again, show humanity’s better face.

Paulo Sotero is director of the Brazil Institute at the Woodrow Wilson International Center of Scholars in Washington, DC.

Brazil Police Investigate Panama Bank

Rogerio Jelmayer – The Wall Street Journal, 07/07/2016

SÃO PAULO—Brazil’s authorities are investigating a Panamanian financial institution that allegedly worked with “Panama Papers” law firm Mossack Fonseca  & Co. to set up offshore accounts for Brazilian clients, in an operation that is an offshoot of the Car Wash corruption probe.

Police and prosecutors said Thursday during a press conference that police have detained for questioning seven people in São Paulo state linked with the financial institution, FPB Bank Inc.

According to prosecutors, there is evidence that services provided by FPB and Mossack Fonseca, the Panama City-based law firm whose client records were exposed as part ofthe so-called Panama Papers leak, were used by clients in Brazil to hide money coming from bribes paid in a bid-rigging scheme at state oil company Petróleo Brasileiro SA, or Petrobras.

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Flame Lands in Troubled Brazil for 94-Day Relay to Games

Reuters/The New York Times, 05/03/2016

President Dilma Rousseff lit the Olympic torch in Brazil’s capital on Tuesday and pledged that political turmoil engulfing her nation would not harm the first Games to be held in South America.

The Olympic flame was flown into Brasilia on Tuesday to start a three-month relay through more than 300 towns and cities that will end with the opening of the 2016 Games in Rio de Janeiro’s Maracaná stadium on Aug. 5.

A smiling Rousseff waved to crowds as she lit a green cauldron with the Olympic flame on the ramp of Brasilia’s modernistic Planalto presidential palace.

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Isolated, Rousseff Faces Diminishing Chances to Survive Impeachment

Paulo Sotero – Brazil Institute, 04/13/2016

The loss of support to President Dilma Rousseff intensified after the Chamber of Deputies special committee approved, on April 11, a motion to move forward with impeachment proceedings against the embattled Brazilian leader. The action is grounded on evidence that Rousseff’s government manipulated budget accounts and made unauthorized expenditures to hide an exploding fiscal deficit at the root of the country’s ongoing economic disaster.

The impeachment process has been fueled by revelations of the ongoing investigation of a $3 billion corruption scandal involving state oil giant Petrobras, Brazil’s largest company. The crimes, exposed by multiple defendants through plea bargain agreements with federal authorities, started during the administration of popular former president Luiz Inácio Lula da Silva and continued under Rousseff. Prior to being elected president, Dilma Rousseff was minister of energy and chaired the Petrobras board of directors for five years. Although the president has not been charged in the Petrobras case, politicians closely associated with her have been arrested and accused of a variety of crimes. And she may be charged with obstruction of justice for trying to shield Lula from a criminal investigation related to Petrobras by naming him to her cabinet.

Following last month’s decisive break between the Brazilian Democratic Movement Party (PMDB), Brazil’s largest party, and the government, other members of Rousseff’s fraying coalition have cut ties with the unpopular president, leaving her increasingly isolated to face the Chamber of Deputy plenary vote on impeachment, scheduled for April 17. Her survival depends on ensuring the allegiance of members of small parties who are driven by their interests in accessing federal agencies budgets and patronage jobs.

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Brazil’s Rousseff Pledges Unity Government as Impeachment Momentum Grows

The New York Times/Reuters, 04/13/2016

Brazil’s President Dilma Rousseff pledged on Wednesday to form a government of national unity if she survives an impeachment vote in Congress this weekend, but the odds of that lengthened as allies continued to desert her.

A stream of defections from Rousseff’s coalition makes it increasingly likely she will lose Sunday’s ballot in the lower house of Congress on whether she should face trial in the Senate over accusations she broke budget laws.

Politicians have begun to flock this week to the residence of the man who would replace Rousseff if she is convicted, Vice President Michel Temer, to declare their support for him, his aides said.

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Brazilian government in chaos, yet markets cheer

Jon Sindreu – Wallstreet Journal, 03/18/2016

Brazil’s government and economy are in chaos, and the country’s stock market is soaring.

Behind this counter intuitive move lies a belief that the government’s days are numbered. But don’t be so sure, say some experts.

Brazil’s main stock market index, the Ibovespa, rose by more than 6%, the biggest gain in seven years.

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Brazil’s government in crisis – the Guardian briefing

The Guardian, 03/17/2016

Tens of thousands of Brazilians took to the streets on Wednesday to protest against the government, as a gathering corruption scandal threatened to engulf the president and her predecessor.

Earlier Dilma Rousseff appointed Luiz Inácio “Lula” da Silva as her chief of staff, in what was widely seen by her critics as an attempt to shield him from prosecution over alleged corruption and money-laundering. Under Brazilian law, only the supreme court can authorise the investigation, imprisonment and trial of cabinet members.

Hours after Lula’s appointment, a judge investigating a corruption scandal at the state-run oil company Petrobras released a number of secretly taped phone calls between Lula and Rousseff, which appeared to suggest that the job offer had indeed been made to protect the former president.

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Brazil Opposition Lawmakers Demand Rousseff Resignation During Session

Reuters/New York Times, 03/17/2016

Dozens of lawmakers opposed to Brazilian President Dilma Rousseff chanted “resign” at a Congressional session late on Wednesday, in a sign of rising political tensions in Latin America’s largest economy.

The lawmakers gathered around a microphone interrupted the session to demand Rousseff’s resignation, according to images broadcast live by news channel GloboNews. Rousseff’s administration is struggling with fallout from a sweeping corruption probe, known as “Operation Car Wash.”

In a bid to stave off impeachment proceedings in Congress, Rousseff named her predecessor and political mentor Luiz Inácio Lula da Silva as her chief of staff on Wednesday.

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Ex-President ‘Lula’ Joins Brazil’s Cabinet, Gaining Legal Shield

, 03/16/2016

After the police raided his home and prosecutors sought his arrest, the former president of Brazil, Luiz Inácio Lula da Silva, seemed destined to become the biggest figure caught in the widening corruption investigation upending Latin America’s largest country.

But as it turns out, he may have an unusual escape route. Instead of facing jail, he is becoming a cabinet minister: President Dilma Rousseff, his protégée and successor, announced Wednesday that she was making him chief of staff.

The move grants Mr. da Silva, the founder and face of the governing Workers’ Party, broad legal protections, but it quickly intensified the political upheaval rattling the nation.

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