Corruption in Brazil
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Corruption in Brazil exists on all levels of society from the top echelons of political power to the smallest municipalities.
Operation Car Wash Operation Car Wash ( pt, Operação Lava Jato) was a criminal investigation by the Federal Police of Brazil's Curitiba branch. It began in March 2014 and was initially headed by investigative judge in France, but unlike judges in the common law ...
showed central government members using the prerogatives of their public office for
rent-seeking Rent-seeking is the act of growing one's existing wealth without creating new wealth by manipulating the social or political environment. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic effic ...
activities, ranging from political support to siphoning funds from state-owned corporation for personal gain. Specifically, ''mensalão'' typically referred to the practice of transferring taxpayer funds as monthly allowances to members of congress from other political parties in consideration for their support and votes in congress. Politicians used the state-owned and state-run oil company Petrobras to raise hundreds of millions of
reais The Brazilian real ( pl. '; sign: R$; code: BRL) is the official currency of Brazil. It is subdivided into 100 centavos. The Central Bank of Brazil is the central bank and the issuing authority. The real replaced the cruzeiro real in 1994. ...
for political campaigns and personal enrichment. Corruption was cited among many issues that provoked the 2013 protests. Corruption directly affects the welfare of citizens by decreasing public investments in health, education, infrastructure, security, housing, among other rights essential to life, and hurts the
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by expanding
social exclusion Social exclusion or social marginalisation is the social disadvantage and relegation to the fringe of society. It is a term that has been used widely in Europe and was first used in France in the late 20th century. It is used across discipline ...
and
economic inequality There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income (the amount of money people are paid) and wealth inequality measured using the distribution of wealth (the amount of ...
. Studies by the
Getúlio Vargas Foundation Getúlio may refer to: * Getulio Agostini (1943-1990), Venezuelan botanist * Getulio Alviani (1939-2018), Italian painter * Getúlio Côrtes (born 1938), Brazilian singer * Getúlio (footballer, 1947-2008), Getúlio Pedro da Cruz, Brazilian footba ...
(FGV) from 2009 estimate that the Brazilian economy loses from corruption, every year, from one to four percent of the Gross Domestic Product (GDP), the equivalent of one value over 30 billion reais. The following year, a study by the Federação das Indústrias do Estado de São Paulo (Fiesp) found that the annual cost of corruption in the country is 1.38 percent to 2.3 percent of the GDP. In 2013, a study by the Confederação Nacional da Indústria (CNI) showed that each real misappropriated by corruption represents a damage to the economy and society of three reais. The " Brazilian way" is seen as a form of practice of "small corruptions", such as evading taxes, stealing cable TV signals, jumping the queue, simulating or concealing business, among others.


Definition

All types of corruption exist. Clientilism, cronyism, and nepotism are widespread in Brazil, and many critics mention how some of the members of Brazilian Supreme Court are seen openly mingling with politicians. Bribery (called ''propina'' or ''suborno'' in Portuguese) is also rife throughout the Brazilian bureaucracy. But one of the most common types of corruption in Brazil is embezzlement of public funds through
overbilling Overbilling (sometimes spelled as over-billing) is the practice of charging more than is legally or ethically acceptable on an invoice or bill. Overview Contractors and professionals Overbilling in the medical industry can occur when doctors seek ...
, called ' in Portuguese (literally "super invoicing"). This technique allows individuals to enrich themselves, and also finance political campaigns (as seen in the Petrobras scandal), and is closely linked to public contracts with private enterprises. Construction is a prime example, in contracts to build roads, sewage, and public buildings. It is estimated that 30% of all Brazilian public funds are embezzled this way each year. As Fernando Filgueiras teaches: tolerance to corruption is not a deviation of the Brazilian character, a propensity and cult of immorality, not even a situation of cordiality, but a practical disposition born of a culture in which preferences are limited to a context of needs, representing a survival strategy that occurs through the material issue. According to Raymundo Faoro, corruption is a "vice" inherited from the Iberian world, the result of a patrimonialist relationship between Government and Society.


Measurement

The scale of corruption in Brazil is immense, but largely under-reported in the media and historically not investigated, prosecuted or punished, so it is difficult to estimate just how large the problem is. The Car Wash (Lava Jato) investigation may be changing this trend. Corruption in Brazil increases the already enormous Brazilian shadow economy which some sources estimate at 16.1% of the gross domestic product, a number that probably needs to be adjusted up considerably if corruption as such is included as part of the shadow economy.
Transparency International Transparency International e.V. (TI) is a German registered association founded in 1993 by former employees of the World Bank. Based in Berlin, its nonprofit and non-governmental purpose is to take action to combat global corruption with civil ...
's 2021 Corruption Perceptions Index gave Brazil a score of 38 on a scale from 0 ("highly corrupt") to 100 ("highly clean"). When ranked by score, Brazil ranked number 96 among the 180 countries in the Index, where the country ranked number 1 is perceived to have the most honest public sector.


Political corruption

Political corruption is considered to be widespread in Brazil. A series of sources documenting historical corruption have only recently started to be published, some of them with references up to Colonial times. A unique complex network analysis revealed associations between those involved in corruption scandals included not only active (elected and non-elected) politicians, but also companies, both state-owned and private companies which had been favored in selection processes for execution of large infrastructure projects, some of which were cited both in the Panama Papers and
Paradise Papers The Paradise Papers are a set of over 13.4 million confidential electronic documents relating to offshore investments that were leaked to the German reporters Frederik Obermaier and Bastian Obermayer, from the newspaper'' Süddeutsch ...
. The complexity of such corruption networks has been compared to the mafia, drug traffic networks and terrorist networks. The practice of "superfaturamento"—overpricing—in Brazil is considered to be an extremely common form of corruption in contracts and purchases for public institutions. Recent examples have been reported in small primary schools where products like pencils and notebooks were bought with padded invoices, as well as in grand-scale construction projects roads, football stadiums(not least in connection with large scale events such as the Olympics and FIFA's
World Cup A world cup is a global sporting competition in which the participant entities – usually international teams or individuals representing their countries – compete for the title of world champion. The event most associated with the concept i ...
). Furthermore, bribes are also common in the police. Generally, corruption occurs through resources from the public budgets of the union, states, and municipalities destined to health, education, social security and social and infrastructure programs, which are siphoned off to fund election campaigns, corrupt
public officials An official is someone who holds an office (function or mandate, regardless whether it carries an actual working space with it) in an organization or government and participates in the exercise of authority, (either their own or that of their su ...
, or even into personal bank accounts abroad. On October 13, 2020,
Transparency International Transparency International e.V. (TI) is a German registered association founded in 1993 by former employees of the World Bank. Based in Berlin, its nonprofit and non-governmental purpose is to take action to combat global corruption with civil ...
pointed to a "progressive deterioration of the institutional anti-corruption framework in the country" and serious setbacks in the fight against corruption in Brazil.


History


Colonial and imperial times (1500-1889)

Nepotism would have already landed in Brazil aboard the first
caravel The caravel (Portuguese: , ) is a small maneuverable sailing ship used in the 15th century by the Portuguese to explore along the West African coast and into the Atlantic Ocean. The lateen sails gave it speed and the capacity for sailing win ...
, with the Letter of Pêro Vaz de Caminha written by
Pero Vaz de Caminha Pero may refer to: * Pero (mythology), several personages in Greek mythology ** Pero (princess), daughter of Neleus * Pero (name), a list of people with either the given name or surname Pero * Pero language, a language of Nigeria * Pero, Lombardy, ...
, in the which asks the king to order "from the island of São Tomé to fetch Jorge de Osório, my son-in-law". To occupy and administer the new territory, a task quite complicated by the geographic distance and precariousness of communications, the
Portuguese crown This is a list of Portuguese monarchs who ruled from the establishment of the Kingdom of Portugal, in 1139, to the deposition of the Portuguese monarchy and creation of the Portuguese Republic with the 5 October 1910 revolution. Through the nea ...
had to offer incentives and relaxed the vigilance of its representatives. This generated an environment so favorable to the practice of corruption, that already in the 17th century, Padre Antônio Vieira denounced it through the ''Sermon of the Good Thief'', where he boldly exposes the excesses practiced by settlers and administrators in Brazil: There are also reports of corruption in the highest spheres of power since the beginning of the 19th century. At that time, the following verses ran through the streets of national capital:


Fourth republic and military era (1946-1985)


Kubitscheck government

Corruption was also common in the era before the military dictatorship, a particularly notable example is the city of Brasilia itself, which historians believe was systematically overpriced when built in the early 1960s.


Military era

Little to no evidence of corruption was made public during the military dictatorship era (1964–1985). Recently, however, several cases have become increasingly public knowledge and have been reviewed in books including Elio Gaspari's series of historical analyses and in the news. Cases ranged from smuggling whiskey and luxury clothes to outright extortion of companies by military-appointed governors (e.g., in the state of Paraná), who illegally favored their companies in contractor licensing (e.g. Antonio Carlos Magalhães and Magnesita) and used public money to save their own companies from bankruptcy (e.g.,
Paulo Maluf Paulo Salim Maluf (; born 3 September 1931) is a Brazilian politician with a career spanning over four decades and many functions, including those of State Governor of São Paulo, Mayor of the City of São Paulo, Congressman and Presidential cand ...
and his wife Sylvia in the Lutfalla case). British documents pointed out a number of other cases which were suppressed in the 1970s referring to overpriced purchase of UK equipment for construction of ships in Brazil.


Sixth republic (1985-present)


Sarney government

With the fall of the military dictatorship, with the start of redemocratization process, the accusations of endemic corruption in all spheres of government were highlighted and started to hit the news, receiving attention, with then-President
José Sarney José Sarney de Araújo Costa (; born José Ribamar Ferreira de Araújo Costa; 24 April 1930) is a Brazilian politician, lawyer, and writer who served as 31st president of Brazil from 1985 to 1990. He briefly served as the 20th vice president of ...
himself being denounced, although the accusations were not taken forward by the National Congress. It was in the period between 1987 and 1989, that the political crisis, allied to the economic crisis, broke out. Suspicions of overpricing and irregularities in public infraestructure projects were cited, such as the bidding for the North–South Rail. The accusations also stated that José Sarney practiced nepotism, that is, he favored friends and acquaintances with concessions on radios and TVs. The dissatisfaction in a wing of the Party of the Brazilian Democratic Movement (PMDB), current MDB, led to the foundation of the
Partido da Social Democracia Brasileira The Brazilian Social Democracy Party ( pt, Partido da Social Democracia Brasileira, PSDB), also known as the Brazilian Social Democratic Party or the Party of Brazilian Social Democracy,. is a political party in Brazil. As the third largest par ...
(PSDB). The height of the crisis came during the production of the new constitution, at the National Constituent Assembly, where party members put the duration of his mandate in check, voting for a four-year term for Sarney, despite the five-year thesis prevailing, led by a majority of the caucus PMDB and conservative politicians. A Parliamentary Investigation Commission (CPI) was started in 1988 to investigate the corruption accusations, and several requests for impeachment were filed, The CPI named the former president as one of those responsible for the scheme, for having released money from funds controlled by the Presidency to municipalities, without criteria. As soon as the funds ran out, Sarney used the so-called contingency reserve and had the help of the Minister of Planning, Aníbal Teixeira.


Collor government

In the last two decades of the 20th century, particularly after the end of the
military regime A military dictatorship is a dictatorship in which the military exerts complete or substantial control over political authority, and the dictator is often a high-ranked military officer. The reverse situation is to have civilian control of the m ...
, notorious cases of corruption gained great prominence in the media, having even resulted in the removal of the president
Fernando Collor Fernando Affonso Collor de Mello (; born 12 August 1949) is a Brazilian politician who served as the 32nd president of Brazil from 1990 to 1992, when he resigned in a failed attempt to stop his impeachment trial by the Brazilian Senate. Coll ...
de Mello – first president of Latin America to suffer an actual '' impeachment'' process. The first accusations appeared in the second semester of Collor's government. The then-president of Petrobras, Luís Octávio da Motta Veiga, quit, alleging pressure from the former financial secretary of Collor's campaign, Paulo César Farias ("PC Farias"), and the president's brother-in-law, ambassador Marcos Coimbra, to offer loans to the airline company
VASP Viação Aérea São Paulo S/A (São Paulo Airways), better known as VASP, was an airline with its head office in the VASP Building on the grounds of São Paulo–Congonhas Airport in São Paulo, Brazil. It had main bases at São Paulo's two ...
, which had been recently privatized. In 1991 the First Lady Rosane Collor was accused of irregularities at the charity (LBA). In May 1992, Pedro Collor, the president's brother, accused PC Farias of illicit enrichment and being a "goon" for the president in his business in an interview to Veja. From 1993, the extension of the accusations shook the belief in the institutions and in the future of the country and provoked the installation of a Parliament Investigation Committee (CPI), which became known as the CPI do Orçamento, presided over by the then senator Jarbas Passarinho and having as rapporteur the governor of
Pernambuco Pernambuco () is a States of Brazil, state of Brazil, located in the Northeast Region, Brazil, Northeast region of the country. With an estimated population of 9.6 million people as of 2020, making it List of Brazilian states by population, sev ...
at the time, Roberto Magalhães. In 2014, however, former President Collor was exculpated and acquitted by the
Supremo Tribunal Federal The Supreme Federal Court ( pt, Supremo Tribunal Federal, , abbreviated STF) is the supreme court (court of last resort) of Brazil, serving primarily as the Constitutional Court of the country. It is the highest court of law in Brazil for consti ...
of allegations of corruption that were brought against him and which resulted in his "impeachment".


Itamar Franco government

The new government assumed by Vice President
Itamar Franco Itamar Augusto Cautiero Franco (; 28 June 19302 July 2011) was a Brazilian politician who served as the 33rd president of Brazil from 29 December 1992 to 31 December 1994. Previously, he was the 21st vice president of Brazil from 1990 until the ...
was initially supported by all political forces in Congress, except the
Liberal Front Party The Democrats ( pt, Democratas, DEM) was a centre-right political party in Brazil that merged with the Social Liberal Party to found the Brazil Union in 2021. It was founded in 1985 under the name of Liberal Front Party (''Partido da Frente Libe ...
(PFL), which also began to suffer allegations of involvement of ministers in corruption. Several of his ministers, including Henrique Hargreaves and Alexandre Costa.


FHC government

Fernando Henrique Cardoso Fernando Henrique Cardoso (; born 18 June 1931), also known by his initials FHC (), is a Brazilian sociologist, professor and politician who served as the 34th president of Brazil from 1 January 1995 to 31 December 2002. He was the first Brazi ...
's government led by the Brazilian Social Democracy Party (PSDB) was also hit by a series of corruption accusations, firstly regarding federal "help" offered to banks such Nacional and Econômico, and the creation of the Programa de Estímulo à Reestruturação e ao Fortalecimento do Sistema Financeiro Nacional (Proer). Many issues involved the privatization of State companies. One of the people cited in the accusations was a former director of
Banco do Brasil Banco do Brasil S.A. ( en, Bank of Brazil) is a Brazilian financial services company headquartered in Brasília, Brazil. The oldest bank in Brazil, and among the oldest banks in continuous operation in the world, it was founded by John VI, King ...
, Ricardo Sérgio de Oliveira, which was in charge of financial resources for FHC's campaign, and who would have favored business with a consortium formed with Telecom Itália and Daniel Dantas' Opportunity Asset bank. Phone call recordings were central to several accusations regarding
PSDB The Brazilian Social Democracy Party ( pt, Partido da Social Democracia Brasileira, PSDB), also known as the Brazilian Social Democratic Party or the Party of Brazilian Social Democracy,. is a political party in Brazil. As the third largest par ...
. Conversations between the minister of Communications, Luiz Carlos Mendonça de Barros, and the then-president of the Brazilian Development Bank, BNDES, André Lara Resende, demonstrated efforts to benefit the Opportunity consortium. Probably the worst accusations referred to the purchase of Congressional votes to introduce a constitutional amendment to allow for
reelection The incumbent is the current holder of an office or position, usually in relation to an election. In an election for president, the incumbent is the person holding or acting in the office of president before the election, whether seeking re-ele ...
to Executive roles, namely the President. Telephone recordings made public by
Folha de S.Paulo ''Folha de S.Paulo'' (sometimes spelled ''Folha de São Paulo''), also known as simply ''Folha'' (, ''Sheet''), is a Brazilian daily newspaper founded in 1921 under the name ''Folha da Noite'' and published in São Paulo by the Folha da Manhã c ...
in 1997 revealed conversations between representative Ronivon Santiago (
Progressistas Progressistas (; PP) is a centre-right to right-wing political party in Brazil. Founded in 1995 as the Brazilian Progressive Party, it emerged from parties that were successors to ARENA, the ruling party of the Brazilian military dictatorship. ...
Party – State of Acre) and a voice identified by the journal as ''Senhor X'', where Ronivon Santiago reports to have received, along with another four representatives, 200 thousand reais to vote for the reelection amendment, which had been paid by the then-governor of the state o Acre, Orleir Cameli. By the end of 2000–2001, the attention on FHC's government had moved from the corruption accusations to the energy crisis ("Crise do Apagão"), which happened right after the wave of blackouts started in 1999. The 1999 blackout was blamed on a lightning strike, although researchers at the
National Institute for Space Research The National Institute for Space Research ( pt, Instituto Nacional de Pesquisas Espaciais, INPE) is a research unit of the Brazilian Ministry of Science, Technology and Innovations, the main goals of which are fostering scientific research an ...
(INPE) demonstrated the official version to not hold. FHC tried to avoid a similar crisis in 2001 by imposing
energy rationing Energy rationing primarily involves measures that are designed to force energy conservation as an alternative to price mechanisms in energy markets. Because of its economic consequences energy rationing is used as method of last resort, often at tim ...
.


Lula government

While Lula was in office, reports surfaced of payments made to deputies in return for a pledge to support the government with their votes in Congress. According to investigators, more than a dozen construction companies bribed or gave kickbacks to corrupt politicians in return for profitable contracts with state-owned petroleum company Petrobras. Former president of José Adelmario Pinheiro and OAS executive Agenor Medeiros each were sentenced to 16 years incarceration on August 6, 2015. Three other OAS employees received shorter sentences. The most notorious corruption scandal in the Lula government was the Mensalão scandal, which was denounced in 2005. It was a vote-buying scheme by the Workers' Party (PT), denounced by deputy
Roberto Jefferson Roberto Jefferson Monteiro Francisco (born 14 June 1953) is a Brazilian politician. Personal life and education He was born on 14 June 1953, in Petrópolis, in the state of Rio de Janeiro. He is the son of Neusa Dalva Monteiro Francisco and Ro ...
, who later made an awarded statement the scandal later caused the Cassation of Roberto Jefferson . and José Dirceu, who was the Civil House minister in the Lula government and who was considered by the
Supremo Tribunal Federal The Supreme Federal Court ( pt, Supremo Tribunal Federal, , abbreviated STF) is the supreme court (court of last resort) of Brazil, serving primarily as the Constitutional Court of the country. It is the highest court of law in Brazil for consti ...
as one of the commanders of the scheme. The PT bought votes from congressmen at the
Congress A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of ...
, giving them an allowance, in exchange for support to pass reforms that the party wanted to pass. It was discovered, for example, that in 2003, the pension reform proposed by Lula passed Congress due to votes that were bought. Before the monthly allowance, in 2004, the Lula government faced political crises in what was called Bingos scandal. In it Waldomiro Diniz,
José Dirceu José Dirceu (; born March 16, 1946), in full José Dirceu de Oliveira e Silva, is a former Brazilians, Brazilian politician. His political rights were suspended by the Brazilian House of Representatives and he was found guilty by the Brazilian S ...
's advisor appears in the dissemination of a tape recorded by the businessman and bookie Carlos Augusto Ramos, Carlinhos Cachoeira, extorting the "bicheiro" to raise funds for the electoral campaign of PT and PSB in Rio de Janeiro. In exchange, Waldomiro promised to help Augusto Ramos in a public competition. The Ministério Público Federal filed the complaint filed by the Federal Court for criminal conduct in negotiations for the renewal of the contract between the
Caixa Econômica Federal Caixa Econômica Federal (, ''Federal Savings Bank''), also referred to as Caixa, is a state-owned Brazilian financial services company headquartered in Brasília, Brazil. It is the fourth largest banking institution in Brazil, as well as t ...
in 2003. It was initially demanded by a "consultancy" 15 million reais, which was closed at 6  million reais. In 2006, the Dossier scandal also known as "Scandal of the Fools" came to light, as it became known, the repercussion of the arrest, on September 15, 2006, of some members of the Workers' Party (PT) accused of buying a fake
dossier A dossier is a collection of papers or other sources, containing detailed information about a particular person or subject. Dossier can also refer to: Arts, entertainment, and media * ''Dossier 51'', a 1978 film based on a book of the same name ...
, by Luiz Antônio Trevisan Vedoin, with funds of unknown origin. The dossier would accuse PSDB candidate of the state government of São Paulo,
José Serra José Serra Chirico (; born 19 March 1942) is a Brazilian politician who has served as a Congressman, Senator, Minister of Planning, Minister of Health, Mayor of São Paulo, Governor of São Paulo state, and Minister of Foreign Affairs of Bra ...
, of having a relationship with the leeches scandal. The alleged plan would be to harm Serra in the dispute with the government of São Paulo, in which his main adversary in the dispute was the senator Aloizio Mercadante. Supposedly, not only was Serra a target, there were also accusations against the presidential candidate Geraldo Alckmin. The suspects' investigations and testimonies showed that the dossier's contents against PSDB politicians were false. The expression "aloprados" was used by
Luiz Inácio Lula da Silva Luiz Inácio Lula da Silva (; born Luiz Inácio da Silva; 27 October 1945), known mononymously as Lula, is a Brazilian politician, trade unionist, and former metalworker who is the president-elect of Brazil. A member of the Workers' Party ...
to designate those accused of buying the dossier. In 2016, former president Lula (PT) became a defendant for passive corruption and money laundering, culminating in his conviction and imprisonment for 12 years and 1 month in April 2018.


Dilma government

Operation Lava Jato, was an operation that was started in March 17, 2014, during the
Dilma Rousseff Dilma Vana Rousseff (; born 14 December 1947) is a Brazilian economist and politician who served as the 36th president of Brazil, holding the position from 2011 until her impeachment and removal from office on 31 August 2016. She is the first ...
government, by the
Federal Police A law enforcement agency (LEA) is any government agency responsible for the enforcement of the laws. Jurisdiction LEAs which have their ability to apply their powers restricted in some way are said to operate within a jurisdiction. LEAs ...
, Curitiba Branch, and judicially ordered by Judge
Sérgio Moro Sergio Fernando Moro (; born 1 August 1972) is a Brazilian jurist, former federal judge, college professor and politician. He was elected to be a member of the Federal Senate for Paraná in October 2022. In 2015 he gained national attention ...
, Initially a money laundering investigation, which later expanded to cover allegations of corruption at the state-owned oil company Petrobras, whose executives took kickbacks for awarding contracts to construction firms at inflated prices, and in other state-owned companies, The operation issued more than a hundred search warrants, and ordered temporary and preventive detention and coercive measures in its investigation of a money laundering scheme suspected of moving more than " (approximately ) as of November 22, 2016. Because of the unusual nature of its actions, defendants' lawyers accuse the operation of "selectivity" and "partiality", and of being "a criminal case that violated minimum rules of defense for a large number of defendants". to favor large contractors who practiced
cartel A cartel is a group of independent market participants who collude with each other in order to improve their profits and dominate the market. Cartels are usually associations in the same sphere of business, and thus an alliance of rivals. Mos ...
, who in turn made payments bribes to politicians who defended the interests of these construction companies involved in the scheme. It was considered by the Federal Police the largest corruption scheme in the history of the country. The payment of bribes exceeds ten billion reals, and is considered by the US Department of Justice to be the largest case of international bribery. During the operation, more than a thousand court orders were authorized over 100 people were arrested and politicians such as André Vargas and Eduardo Cunha were impeached in the Chamber of Deputies, and later arrested. The operation was launched during the Dilma government, but the crimes began in 2004, during the Lula government, and lasted until 2015, during the Dilma government. The main parties involved are PP, PT and PMDB, however, it involves other politicians from different parties. The
Federal Police A law enforcement agency (LEA) is any government agency responsible for the enforcement of the laws. Jurisdiction LEAs which have their ability to apply their powers restricted in some way are said to operate within a jurisdiction. LEAs ...
considers Operation Lava Jato the largest corruption investigation in the country's history, {and the
United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United Stat ...
considers the
Odebrecht Odebrecht S.A. (), officially known as Novonor, is a Brazilian conglomerate, headquartered in Salvador, Bahia, Brazil, consisting of diversified businesses in the fields of engineering, construction, chemicals and petrochemicals. The company w ...
Group corruption scheme, investigated by Lava Jato, as the largest kickback payment in world history. Lava Jato revealed a table of
systemic corruption Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
in Brazil, showing that corruption has become part of the system itself. In 2015, an opinion poll carried out by the
Datafolha Datafolha is Grupo Folha's polling institute, founded in 1983 as the research department of Empresa Folha da Manhã S. A., and later on became a separate company able to serve external clients, from 1990. In 1995, it became a separate business unit ...
Institute indicated that corruption is the biggest problem in Brazil. In June 2017, the Director for Combating Organized Crime (DICOR/PF) totaled that, as of 2013, losses from various diversions reached close to 123 billion reais. In 2014, Throughout the investigation, members of the Dilma government and the former president herself were investigated for the purchase of the Refinery Pasadena Refinery System Inc, which resulted in a loss of US$790 million to Petrobras. In December 2014, the Controller General of the Union (CGU), through the minister Jorge Hage, appointed 22 responsible for the business, among them, José Sérgio Gabrielli and the former directors Nestor Cerveró, Paulo Roberto Costa, Renato Duque and Jorge Zelada, and exempted the president
Dilma Rousseff Dilma Vana Rousseff (; born 14 December 1947) is a Brazilian economist and politician who served as the 36th president of Brazil, holding the position from 2011 until her impeachment and removal from office on 31 August 2016. She is the first ...
, who chaired the board of directors of Petrobras, and Graça Foster, from any responsibility. In 2016, after the Supreme Court released the testimonies of Nestor Cerveró's
State's evidence A criminal turns state's evidence by admitting guilt and testifying as a witness for the state against their associate(s) or accomplice(s), often in exchange for leniency in sentencing or immunity from prosecution.Howard Abadinsky, ''Organized C ...
, it was found that, by the testimony of the whistleblower, the removed president, Dilma Rousseff, was aware of the payments of bribes to PT politicians, in the purchase of the refinery. Dilma, who chaired the board of Petrobras from 2003 to 2010, denied knowledge of any wrongdoing The Brazilian Supreme Court authorized the investigation of 48 current and former legislators, including former president
Luiz Inácio Lula da Silva Luiz Inácio Lula da Silva (; born Luiz Inácio da Silva; 27 October 1945), known mononymously as Lula, is a Brazilian politician, trade unionist, and former metalworker who is the president-elect of Brazil. A member of the Workers' Party ...
, in March 2016. The president of Petrobras, Aldemir Bendine, estimated in 2015 the company's losses from corruption scandals at R$6.2 billion. The company's shares fell, although they slowly began to recover. In 2017, Dilma Rousseff had her assets blocked by the Federal Court of Accounts (TCU) for damages to Petrobras, and another five former members of the Board of Directors of the state-owned company were also affected. The decision is subject to appeal. Operation Car Wash has resulted in the arrest of many important political figures, including: * Treasurer of the Workers' Party,
João Vaccari Neto João Vaccari Neto (born October 30, 1958, São Paulo) is a Brazilian banker and labor union leader. He is the Secretary of Finance and Planning of the Workers Party (PT) and was president of the cooperative known as BANCOOP (Housing Cooperative ...
, arrested for receiving "irregular donations." * Former Lula chief of staff
José Dirceu José Dirceu (; born March 16, 1946), in full José Dirceu de Oliveira e Silva, is a former Brazilians, Brazilian politician. His political rights were suspended by the Brazilian House of Representatives and he was found guilty by the Brazilian S ...
, arrested for orchestrating a large part of the bribery. *
Speaker Speaker may refer to: Society and politics * Speaker (politics), the presiding officer in a legislative assembly * Public speaker, one who gives a speech or lecture * A person producing speech: the producer of a given utterance, especially: ** I ...
of the Chamber of Deputies ( lower house of the
Congress of Brazil The National Congress of Brazil ( pt, Congresso Nacional do Brasil) is the legislative body of Brazil's federal government. Unlike the state legislative assemblies and municipal chambers, the Congress is bicameral, composed of the Federal Sena ...
) Eduardo Cunha (
PMDB The Brazilian Democratic Movement ( pt, Movimento Democrático Brasileiro, MDB) is a Brazilian political party. It is considered a "big tent party" and it is one of the parties with the greatest representation throughout the national territory, ...
- RJ), investigated for receiving more than US$40 million in kickbacks and bribes. * Former minister of mines and energy
Edison Lobão Edison Bariano Lobão (born 5 December 1936) is a Brazilian politician. He served as governor of Maranhão from 15 March 1991 to 2 April 1994 and as minister of mines and energy in the national government under the Dilma Rousseff administratio ...
is being investigated for taking more than US$50 million from Petrobras. * Former Brazilian President and current Senator
Fernando Collor de Mello Fernando Affonso Collor de Mello (; born 12 August 1949) is a Brazilian politician who served as the 32nd president of Brazil from 1990 to 1992, when he resigned in a failed attempt to stop his impeachment trial by the Brazilian Senate. Collor ...
of the Christian-conservative Christian Labour Party, charged with corruption.


Temer government

The corruption scandals investigated by Operation Lava Jato continued to be investigated after the ''impeachment'' of Dilma Rousseff. In just a few days of existence, the
Michel Temer Michel Miguel Elias Temer Lulia (; born 23 September 1940) is a Brazilian politician, lawyer and writer who served as the 37th president of Brazil from 31 August 2016 to 31 December 2018. He took office after the impeachment and removal from off ...
government faced its first case of scandal and the first departure of a minister, after the newspaper
Folha de S.Paulo ''Folha de S.Paulo'' (sometimes spelled ''Folha de São Paulo''), also known as simply ''Folha'' (, ''Sheet''), is a Brazilian daily newspaper founded in 1921 under the name ''Folha da Noite'' and published in São Paulo by the Folha da Manhã c ...
released recordings of the minister of planning, Romero Jucá, in a telephone conversation in March 2016 with the former president of
Transpetro Petrobras Transporte S.A. (Transpetro) is the largest oil and gas transportation company of Brazil. Transpetro works with transportation and storage activities of oil and byproducts, ethanol, biofuels and natural gas. It is responsible for a net ...
,
Sérgio Machado Sérgio Machado (born 19 September 1968) is a Brazilian film director and screenwriter. His film ''Lower City, Cidade Baixa'' was screened in the Un Certain Regard section at the 2005 Cannes Film Festival. Filmography * ''Onde a Terra Acaba'' (2 ...
. In the conversation, when he was still a senator for the PMDB, Jucá suggested that a change in Dilma Rousseff's government could paralyze the operation, which was investigating both parties. On May 17, the owners of the slaughterhouse JBS said, in denunciation, that they recorded the president
Michel Temer Michel Miguel Elias Temer Lulia (; born 23 September 1940) is a Brazilian politician, lawyer and writer who served as the 37th president of Brazil from 31 August 2016 to 31 December 2018. He took office after the impeachment and removal from off ...
authorizing the purchase of the silenced deputy and former president of the Chamber of Deputies, Eduardo Cunha, when he was already arrested by Lava Jato. The businessman Joesley Batista, owner of JBS, reportedly delivered a recording made in March 2017 in which Temer nominates the deputy Rodrigo Rocha Loures to resolve J&F matters, a '' holding'' which controls the JBS slaughterhouse. Later, Rocha Lourdes was filmed receiving a suitcase with five hundred thousand reais, sent by Joesley. In another recording, also from March, the businessman reportedly told Temer that he was paying an "allowance" to Cunha and the operator Lúcio Funaro, so that they would remain silent in prison. This scandal generated several popular protests and caused people to ask whether Temer could continue in the role of president.


Bolsonaro government


= Pre-presidency

= Another notable case is the fact that almost every member of Bolsonaro's family is being investigated by the police, except for Bolsonaro himself and his youngest children, Renan Bolsonaro and Laura Bolsonaro. The corruption cases involving them are: * Eduardo Bolsonaro: Eduardo Bolsonaro is being investigated for having been a "phantom employee" during 2003 and 2004. He had been appointed to a commissioned position in the PTB leadership in Brasília, while attending courses in Rio de Janeiro, 1,333 km away. He earned the equivalent of 9,800 R$ (Approximately $1,700) per month. * Flávio Bolsonaro and the Queiroz case: Flávio Bolsonaro was involved in a corruption scandal and political crisis called the "Queiroz case". The case began on June 12, 2018, when COAF released a report pointing out movements in the amount of R$1,236,838 ($223,522) in 2016 and 2017 in Fabricio Queiroz's bank account, at the time he held the function of driver and family safety. As the case unfolded, he exposed the arrest of Fabricio Queiroz, in which he had been found in the home of Frederick Wassef, a family member. The suspicion was that Flávio Bolsonaro made a scam where employees return part of their salary to him, in which, supposedly, Queiroz was the one who operated the system. In 2021, the STJ (Superior Court of Justice) annulled all the decisions of the lower court judge and the STF (Supreme Court) annulled the COAF reports, emptying the entire investigation. *Michelle Bolsonaro: Bolsonaro's wife, Michelle Bolsonaro, was allegedly involved in the Queiroz case, in which in 2020, Crusoé magazine reported that it heard a breach of confidentiality in Fabricio Queiroz's bank account, authorized by the court, in which revealed that Queiroz and his wife had deposited around 21 checks (which together amount to 89 thousand reais, approximately 16 thousand US Dolars), in Michelle's account between 2011 and 2016.


= Presidency

= A notable case of corruption scandal in Bolsonaro's administration is that some ministers chosen at the beginning of the government were targets of investigation, namely: Luiz Henrique Mandetta, Tereza Cristina,
Onyx Lorenzoni Onyx Dornelles Lorenzoni (born 3 October 1954) is a Brazilian politician, businessman, and veterinarian. A member of the Liberal Party (PL), he is a federal deputy from Rio Grande do Sul in his fourth term. After the 2018 Brazilian general ele ...
, Paulo Guedes and
Marcos Pontes Marcos Cesar Pontes (born 11 March 1963) is a Brazilian Air Force pilot, engineer, AEB astronaut, politician and author. He became the first South American and the first Lusophone to go into space when he docked onto the International Space Sta ...
. In the first year of his presidency, the Decree n. 9,690/2019 signed in January caused the discussion and concern of the bodies that monitor Brazilian corruption, the decree signed by the acting president,
Hamilton Mourão Antônio Hamilton Martins Mourão (; born 15 August 1953) is a Brazilian politician and retired military officer serving as the 25th vice president of Brazil. He has served as vice president under Brazilian President Jair Bolsonaro since 1 Januar ...
and the Minister of the Civil House,
Onyx Lorenzoni Onyx Dornelles Lorenzoni (born 3 October 1954) is a Brazilian politician, businessman, and veterinarian. A member of the Liberal Party (PL), he is a federal deputy from Rio Grande do Sul in his fourth term. After the 2018 Brazilian general ele ...
, would authorize commissioned servants to decree top secret confidentiality of public data; Until then, this power was restricted to the President of the Republic, his deputy, ministers of state, commanders of the Armed Forces and heads of diplomatic missions abroad; the following month, in a symbolic vote, the deputies overthrew the decree that went to the Senate for a new deliberation, and then archived. In the Chamber and in the Senate, bills were presented proposing the annulment of the decree due to
unconstitutionality Constitutionality is said to be the condition of acting in accordance with an applicable constitution; "Webster On Line" the status of a law, a procedure, or an act's accordance with the laws or set forth in the applicable constitution. When l ...
. the PDL 3/2019, approved by the Chamber, received an urgent request with 367 votes in favor and 57 against, and forwarded to the Senate, the House was already voting on two similar proposals, PDL 22/2019 and PDL 27/2019.


Legal framework

To counteract widespread corruption in the private and public sector, Brazil enacted the Clean Company Act 2014 (Law No. 12, 846), which held companies responsible for the corrupt practices of their employees and liable without a finding of fault.
Bid rigging Bid rigging is a fraudulent scheme in procurement auctions resulting in non-competitive bids and can be performed by corrupt officials, by firms in an orchestrated act of collusion, or between officials and firms. This form of collusion is illegal ...
and fraud are prohibited in public procurement, as well as bribery of Brazilian public officials. If found guilty of corruption the companies can be suspended, dissolved or fined. In an article done by Global Compliance News, there is stress put on the difference between individuals and legal entities in Brazilian anti-corruption Law. Firstly, only individuals can be criminally punished if found guilty of bribery. Legal entities (i.e. companies and organizations) are punished through the use of judicial and administrative sanctions. During this process, if found guilty legal entities are subject to losing 0.1% to 20% of their gross revenue along with the removal of all public loans, assets, and government subsidies. Foreign public officials found guilty of corruption are liable to penalties and up to eight years of imprisonment, while at the same time being subject to any punishments placed on legal entities. However, in spite of all this, Brazilian legislation does not put a limit on hospitality expenses to officials; although any amount can be considered corrupt.


Ranking of corruption

Based on data released by the
Superior Electoral Court The Superior Electoral Court ( pt-BR, Tribunal Superior Eleitoral, TSE) is the highest body of the Brazilian Electoral Justice, which also comprises one Regional Electoral Court ( pt-BR, Tribunal Regional Eleitoral, TRE) in each of the 26 states ...
, the Movement to Combat Electoral Corruption released a balance on October 4, 2007, with the parties that include the largest number of parliamentarians quashed by electoral corruption since 2000. The Brazilian Social Democracy Party appeared in third place on the list with 58 cases, behind only the Democrats and the
Brazilian Democratic Movement The Brazilian Democratic Movement ( pt, Movimento Democrático Brasileiro, MDB) is a Brazilian political party. It is considered a "big tent party" and it is one of the parties with the greatest representation throughout the national territory, ...
. According to analysis released on September 8, 2012, of 317 Brazilian politicians who were barred from running in elections by the Clean Record Act the Brazilian Social Democracy Party has the largest number of barred candidates with 56 party members.


Opposition

Anti-corruption sentiment in Brazil is a common subject in politics, media, art and activism. During the democratic period in the country, the press could report corruption cases and the opposition against the corruption was adopted by virtually all Brazilians. A study found that corruption was seen as the country's biggest problem.


In politics

During the
Fourth Brazilian Republic ) , national_anthem =" Hino Nacional Brasileiro"( en, "Brazilian National Anthem") , common_languages = Portuguese , government_type = Federal presidential republic(1946–1961; 1963–1964) Federal parliamentary republic(1961–1 ...
, Adhemar de Barros was appointed by the president
Getúlio Vargas Getúlio Dornelles Vargas (; 19 April 1882 – 24 August 1954) was a Brazilian lawyer and politician who served as the 14th and 17th president of Brazil, from 1930 to 1945 and from 1951 to 1954. Due to his long and controversial tenure as Brazi ...
as governor of
São Paulo São Paulo (, ; Portuguese for ' Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the Ga ...
. Ademar was accused of
unjust enrichment In laws of equity, unjust enrichment occurs when one person is enriched at the expense of another in circumstances that the law sees as unjust. Where an individual is unjustly enriched, the law imposes an obligation upon the recipient to make re ...
and fired by Vargas, but was elected as governor of São Paulo by direct vote. The motto "He steals, but he also works" ("Rouba, mas faz") was first attributed to Ademar, suggesting that a politician that builds a good government can be elected despite his electoral crimes. Various politicians opposed Adhemar and the corruption in the country;
Jânio Quadros Jânio da Silva Quadros (; January 25, 1917 – February 16, 1992) was a Brazilian lawyer and Politics of Brazil, politician who served as the 22nd president of Brazil from January 31 to August 25, 1961, when he resigned from office. He als ...
beat Adhemar in gubernatorial elections and was elected president, by accusing
Juscelino Kubitscheck Juscelino Kubitschek de Oliveira (; 12 September 1902 – 22 August 1976), also known by his initials JK, was a prominent Brazilian politician who served as the 21st president of Brazil from 1956 to 1961. His term was marked by economic prosp ...
of taking advantage of the construction of Brasilia, to make a government characterized by embezzlement. Other politicians, like Levy Fidelix, inspired by Jânio, also made anti-corruption speeches in their electoral campaign. The theme was platformed in various electoral debates.


Among the military

Positivism was a philosophy present in the military environment. Various prominent figures declared that the military coup in 1964, was to combat the corruption in the country. According to the military rulers, all civil politicians were selfish and corrupted; only the military could save the country. Even
Jânio Quadros Jânio da Silva Quadros (; January 25, 1917 – February 16, 1992) was a Brazilian lawyer and Politics of Brazil, politician who served as the 22nd president of Brazil from January 31 to August 25, 1961, when he resigned from office. He als ...
was a target of the regime's politics of persecution. After the return of democracy, political immunity was given to congressman, to avoid unfair persecution, like those of the dictatorship. This controversial law is the subject of debate, because possible corrupt politicians, when charged, can seek protection by only being tried by the Supreme Court Jair Bolsonaro, a former military officer and current president of republic, made controversial speeches against the establishment and parliamentarian forces.


By people

During the 2010s, several movements were created to combat political corruption, like the
Free Brazil Movement Free Brazil Movement (, MBL) is a Brazilian conservative and economically liberal movement founded in 2014. Initially a ramification of the Brazilian branch of Students for Liberty, it grew boarding the political dissatisfaction after the 2013 ...
. Movements like "Fora Collor" (Get-out, Collor), "Fora Dilma" (Get-out, Dilma), "Fora Temer" (Get-out, Temer) and "Fora Bolsonaro" (Get-out, Bolsonaro) were supported by popular masses. Military guerrillas stole money from Adhemar de Barros' safe box during military dictatorship.


By political system

The three branches of power in Brazil were associated with corruption or with the protection of corrupt politicians. During the impeachment process of
Fernando Collor de Mello Fernando Affonso Collor de Mello (; born 12 August 1949) is a Brazilian politician who served as the 32nd president of Brazil from 1990 to 1992, when he resigned in a failed attempt to stop his impeachment trial by the Brazilian Senate. Collor ...
, supporters of
parliamentary system A parliamentary system, or parliamentarian democracy, is a system of democratic governance of a state (or subordinate entity) where the executive derives its democratic legitimacy from its ability to command the support ("confidence") of th ...
said that parliament needed powers to more easily change the chief of government. Brazilian populists claimed that the legislative branch was made up of the corrupt. The supreme court was accused of being the greatest supporter of political corruption.
Brazilian monarchists Brazilian commonly refers to: * Something of, from or relating to Brazil * Brazilian Portuguese, the dialect of the Portuguese language used mostly in Brazil * Brazilians, the people (citizens) of Brazil, or of Brazilian descent Brazilian may als ...
claimed that the spread of corruption, was a consequence of the republican system of government.


By ideology

Right-wing politicians accuse left-wing politicians of being corrupt. This stereotype was created during the government of
Luiz Inácio Lula da Silva Luiz Inácio Lula da Silva (; born Luiz Inácio da Silva; 27 October 1945), known mononymously as Lula, is a Brazilian politician, trade unionist, and former metalworker who is the president-elect of Brazil. A member of the Workers' Party ...
when the
mensalão scandal The Mensalão scandal ( pt, Escândalo do Mensalão, ) was a major parliamentary vote-buying scandal by Luiz Inácio Lula da Silva's administration that threatened to bring down his government in 2005. ''Mensalão'' is a neologism, a variant of ...
was discovered. In the second term of
Dilma Rousseff Dilma Vana Rousseff (; born 14 December 1947) is a Brazilian economist and politician who served as the 36th president of Brazil, holding the position from 2011 until her impeachment and removal from office on 31 August 2016. She is the first ...
's Presidency in 2016, Citizens and right wing politicians began the movement to impeach Rousseff due to the economy failing. This was caused by how much money she took out of public banks for her federal campaign to become elected. Once Rousseff was impeached from the office,
Michel Temer Michel Miguel Elias Temer Lulia (; born 23 September 1940) is a Brazilian politician, lawyer and writer who served as the 37th president of Brazil from 31 August 2016 to 31 December 2018. He took office after the impeachment and removal from off ...
took over and completed the term in 2018. During his term, Temer slowly introduced far right ideals to the public. After his term in 2018, Jair Bolsonaro was elected president and became the first president with right-wing ideals for the first time since 2001. Jair Bolsonaro built up his political campaign through YouTube at first, slowly influencing citizens with far right ideas overtime before running for office. Jair Bolsonaro claimed in his political campaign, that the Worker's Party was the most corrupt political party in the world. The idea that left-wing activists protect criminals like thieves, rapists and murderers, encouraged right-wing politicians to believe that the corrupt are also protected by leftists.


See also

* Brazilian Anti-Corruption Act *
Crime in Brazil Crime in Brazil involves an elevated incidence of violent and non-violent crimes. Brazil possesses high rates of violent crimes, such as murders and robberies. Brazil's homicide rate was 27.4 homicides per 100,000 inhabitants according to the U ...
*
Economy of Brazil The economy of Brazil is historically the largest in Latin America and the Southern Hemisphere in nominal terms. The Brazilian economy is the third largest in the Americas. The economy is a middle income developing mixed economy. In 2022, a ...
* Politics of Brazil


Notes


References


External links

* {{South America topic, Corruption in