Brazil Supreme Court Authorizes Investigation of Top Government Officials
April 11 2017 - 8:55PM
Dow Jones News
By Samantha Pearson and Luciana Magalhaes
SÃO PAULO -- Brazil's Supreme Court has authorized
investigations of dozens of top politicians and government
officials for alleged corruption related to the sprawling Operation
Car Wash probe, delivering a major blow to President Michel Temer
as he struggles to get economic reforms approved.
Justice Edson Fachin, who is overseeing cases in Brazil's high
court related to the Car Wash probe, has given permission for
prosecutors to open investigations of at least eight cabinet
ministers, the leaders of both houses of Congress, and more than 20
senators and federal deputies, according to a document from the
court released on Tuesday.
The investigation involves a bid-rigging and bribery scheme at
state-controlled oil company Petróleo Brasileiro SA, or Petrobras,
and has resulted in numerous convictions of business and political
leaders.
In Brazil, the Supreme Court has to approve investigations of
sitting politicians and cabinet members.
The announcement comes as the Temer administration is trying to
guide a controversial reform of the country's insolvent pension
system through Congress. The reform is seen as necessary to help
reduce the government's yawning budget deficit and restore
confidence in the nation's ailing economy.
"This is hitting at the heart of government especially as these
are important ministers for Temer," said Rafael Cortez, a political
scientist at São Paulo-based consultancy Tendências. "This will
create even more turbulence and increase the urgency to pass
economic reforms."
Among the cabinet ministers that face investigation are Chief of
Staff Eliseu Padilha and Secretary-General of the Presidency
Wellington Moreira Franco, both of whom are key to the
administration's relations with Congress. Mr. Padilha declined to
comment, and Mr. Moreira Franco wasn't immediately available to
comment.
Eunicio Oliveira, head of Brazil's Senate, said he will defend
himself against any accusations. Rodrigo Maia, who leads Brazil's
lower house of Congress, couldn't immediately be reached for
comment.
Brazil's economy contracted in 2015 and 2016 as the country
suffered through its worst recession in recorded history, and this
year gross domestic product is forecast to expand less than 1%.
Jeffrey T. Lewis contributed to this article.
Write to Samantha Pearson at samantha.pearson@wsj.com and
Luciana Magalhaes at Luciana.Magalhaes@wsj.com
(END) Dow Jones Newswires
April 11, 2017 20:40 ET (00:40 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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