Handling Systemic Corruption in Brazil
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Populism and Corruption
Transparency International Anti-Corruption Helpdesk Answer Populism and corruption Author(s): Niklas Kossow, [email protected] Reviewer(s): Roberto Martínez B. Kukutschka, [email protected] Date: 14 January 2019 This Helpdesk Answer looks at how corruption and populism interlink. First, it provides an overview of the different definitions of populism, all of which point to the fact that populism, as a political ideology and as a style of political communication, divides society into two groups: the people and the “elites”. Second, it explains how corruption becomes an inherent part of populist rhetoric and policies: populist leaders stress the message that the elites works against the interest of the people and denounce corruption in government in order to stylize themselves as outsiders and the only true representatives of the people’s interest. While the denunciations of corruption can often be considered valid, populist leaders rather than effectively fighting corruption use the populist rhetoric as a smoke screen to redistribute the spoils of corruption amongst their allies. In many cases populism even facilitate new forms of corruption. Finally, the answer uses examples from Hungary, the Philippines and the USA to show how corruption and populism relate to one another. © 2019 Transparency International. All rights reserved. This document should not be considered as representative of the Commission or Transparency International’s official position. Neither the European Commission,Transparency International nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information. This Anti-Corruption Helpdesk is operated by Transparency International and funded by the European Union. -
Comparing Presidential Corruption Scandals in Guatemala and Brazil: Part 1
Comparing Presidential Corruption Scandals in Guatemala and Brazil: Part 1 Comparing Presidential Corruption Scandals in Guatemala and Brazil: Part 1 Written by Mike LaSusa Thursday, 27 October 2016 Brazil Guatemala Elites and Organized Crime Over the past several years, both Brazil Twitter and Guatemala have been rocked by revelations of widespread corruption at the highest levels of government. Former presidents in both countries are now standing trial for their alleged roles in the respective scandals. InSight Crime Recent corruption scandals have reached the highest levels of government in Guatemala and explores some of the similarities and Brazil differences between these cases. In addition to reporting by InSight Crime and other outlets, this article also draws on a discussion InSight Crime moderated recently between Mike Allison, an expert on Central American politics who serves as an associate professor and chair of the political science department at the University of Scranton, and Matthew Taylor, an associate professor at American University's School of International Service who focuses on state capacity and corruption in Latin America and who has extensive experience in Brazil. An edited transcript of that conversation has been published here. Who was involved? Guatemala: Former Guatemalan President Otto Pérez Molina and former http://www.insightcrime.org/news-analysis/comparing-presidential-corruption-scandals-in-guatemala-and-brazil[10/28/2016 11:10:25 AM] Comparing Presidential Corruption Scandals in Guatemala and Brazil: Part 1 Vice President Roxana Baldetti were accused in June 2016 by the United Nations-backed International Commission against Impunity in Guatemala (Comisión Internacional Contra la Impunidad en Guatemala - CICIG) of leading a "criminal mafia structure that had co-opted power through the ballot box." The criminal network also allegedly included Baldetti's private secretary Juan Carlos Monzón as a key intermediary, as well as numerous other government officials and business elites. -
Petrobras Oil Scandal Leaves Brazilians Lamenting a Lost Dream
https://nyti.ms/1SY8Z2P INTERNATIONAL BUSINESS Petrobras Oil Scandal Leaves Brazilians Lamenting a Lost Dream By DAVID SEGAL AUG. 7, 2015 Alberto Youssef, a convicted money launderer and former bon vivant, sat in a Brazilian jail cell in March of last year, getting ready to tell his lawyers a story. It was about an elaborate bribery scheme involving Petrobras, the government-controlled oil giant. He opened with a dire prediction. “Guys,” Mr. Youssef said, “if I speak, the republic is going to fall.” To those lawyers, Tracy Reinaldet and Adriano Bretas, who recently recounted the conversation, this sounded a tad melodramatic. But then Mr. Youssef took a piece of paper and started writing the names of participants in what would soon become known as the Petrobras scandal. Mr. Reinaldet looked at the names and asked, not for the last time that day, “Are you serious?” “We were shocked,” he recalled, sitting in a conference room in his law office in downtown Curitiba, the capital of the southern state of Paraná, one morning in June. “It was kind of like, in Brazil, we know that corruption is a monster. But we never really see the monster. This was like seeing the monster.” What Mr. Youssef described to his lawyers, and then to prosecutors after he signed a plea agreement last year, is a fraud that has destabilized the country’s political system, helped tilt the economy into recession and left thousands unemployed. It has all but devastated Brazil’s status as an up-and-comer on the world stage. The Petrobras scandal would read as pure tragedy were it not filled with a cast of Hollywood-ready characters and their lavish props. -
Combating Corruption in Latin America: Congressional Considerations
Combating Corruption in Latin America: Congressional Considerations May 21, 2019 Congressional Research Service https://crsreports.congress.gov R45733 SUMMARY R45733 Combating Corruption in Latin America May 21, 2019 Corruption of public officials in Latin America continues to be a prominent political concern. In the past few years, 11 presidents and former presidents in Latin America have been forced from June S. Beittel, office, jailed, or are under investigation for corruption. As in previous years, Transparency Coordinator International’s Corruption Perceptions Index covering 2018 found that the majority of Analyst in Latin American respondents in several Latin American nations believed that corruption was increasing. Several Affairs analysts have suggested that heightened awareness of corruption in Latin America may be due to several possible factors: the growing use of social media to reveal violations and mobilize Peter J. Meyer citizens, greater media and investor scrutiny, or, in some cases, judicial and legislative Specialist in Latin investigations. Moreover, as expectations for good government tend to rise with greater American Affairs affluence, the expanding middle class in Latin America has sought more integrity from its politicians. U.S. congressional interest in addressing corruption comes at a time of this heightened rejection of corruption in public office across several Latin American and Caribbean Clare Ribando Seelke countries. Specialist in Latin American Affairs Whether or not the perception that corruption is increasing is accurate, it is nevertheless fueling civil society efforts to combat corrupt behavior and demand greater accountability. Voter Maureen Taft-Morales discontent and outright indignation has focused on bribery and the economic consequences of Specialist in Latin official corruption, diminished public services, and the link of public corruption to organized American Affairs crime and criminal impunity. -
Preventing Systemic Corruption in Brazil
Preventing Systemic Corruption in Brazil Sérgio Fernando Moro Abstract: This essay describes the Brazilian anticorruption operation known as Operação Lava Jato (“Operation Car Wash”), its findings, and its results based on cases tried up to March 2018. Told from the perspective of the federal judge of the Thirteenth Federal Criminal Court of Curitiba, in whose court most of the Lava Jato cases have been prosecuted, this massive criminal case offers lessons that may be useful to other anticorruption efforts. Preventing systemic corruption is a challenge, but it is a necessary step for the improvement of democracy. What began as an investigation of an isolated in- stance of corruption within a Brazilian oil compa- ny expanded into an immense anticorruption oper- ation known as Operação Lava Jato (“Operation Car Wash”). This investigative operation has penetrat- ed deep within Brazil’s government and corporate elite to root out systemic state-sanctioned corrup- tion. Its criminal cases also appear to be instating new legal norms for how corruption cases are han- dled in Brazil, giving citizens hope that Lava Jato’s impact will be felt far into the future. How Brazilian prosecutors and courts dealt with this immense anti- corruption effort may provide important lessons for the battle against systemic corruption both in Bra- zil and elsewhere. This essay provides a comprehen- sive account of Lava Jato and its significance for Bra- zil going forward. It is important to note from the beginning that Lava sÉrgio fernando moro is Jato is not a single criminal case but several, in which a Federal Judge of the Thirteenth federal prosecutors have decided to pursue separate Federal Criminal Court of Curi- charges against many defendants. -
Os Protestos E O Impeachment De Dilma Rousseff
Lusotopie 17 (2018) 112-135 brill.com/luso Entre as ruas e as instituições: os protestos e o impeachment de Dilma Rousseff Luciana Tatagiba Professora Livre-Docente do Departamento de Ciência Política, da Universidade Estadual de Campinas (Unicamp). Coordenadora do Núcleo de Pesquisa em Participação, Movimentos Sociais e Ação Coletiva, NEPAC/ UNICAMP Rua Mata Atlântica, 180, Bosque de Barão Geraldo, Campinas, São Paulo, Brasil, 13082-755 [email protected] Resumo O artigo analisa a campanha pelo impeachment de Dilma Rousseff, buscando com- preender as condições para a emergência e sucesso dos protestos de direita. Como foi possível que organizações desconhecidas tivessem êxito em mobilizar uma base social sem tradição de protestos, em um cenário de confronto político até então domi- nado pela esquerda? O artigo propõe que a resposta está na forma como se combinou política institucional e mobilização social nessa conjuntura, a partir da laboriosa con- strução do antipetismo, ou mesmo do ódio ao PT. Palavras-chave protestos – direita – confronto político – antipetismo © koninklijke brill nv, leiden, 2018 | doi:10.1163/17683084-12341714Downloaded from Brill.com02/20/2019 07:24:44PM via communal account Entre as ruas e as instituições 113 Entre les rues et les institutions : Les protestations et la campagne de destituion de Dilma Rousseff Résumé L’article analyse la campagne de destitution de Dilma Rousseff, cherchant à com- prendre les conditions pour l’émergence et le succès des manifestations de droite. Comment était-il possible que des organisations inconnues aient réussi à mobi- liser une base sociale qui n’avait pas tradition de protestation, dans un scénario de confrontation politique jusqu’alors dominé par la gauche ? La réponse proposée par l’article réside dans la manière dont la politique institutionnelle et la mobilisation so- ciale ont été combinées dans cette conjoncture, à partir de la construction laborieuse de l’antipétisme, ou de la haine envers le PT. -
Brazil's “Operation Car Wash”: the Latest Chapter
Brazil’s “Operation Car Wash”: The Latest Chapter Kelly Kramer Bernardo Weaver Partner Partner + 1 202 263 3007 +55 11 2504 4604 [email protected] [email protected] September 20, 2016 Speakers Kelly Kramer Bernardo Weaver Washington, DC São Paulo (T&C) + 1 202 263 3007 +55 11 2504 4604 [email protected] [email protected] Topics for Discussion 1. Origins 2. Petrobras Scheme 3. Change/Expansion in Scope 4. Current Status of Key Political Figures 5. (Proposed) Changes in Legislation 6. Changes in Law Enforcement Techniques 7. Changes in Law Enforcement Behavior 8. Leniency Agreements? 9. The Future “Operation Car Wash” – Origins Money laundering Posto da Torre Brasília-DF Alberto Youssef Paulo Roberto Costa (Black market dollar operator) Former Supply Director of Petrobras “Operation Car Wash” – Scheme Political Nominations “Operation Car Wash” – Change/Expansion of Scope Petrobras (Corruption, cartel, Money Laundering / embezzlement of ??? Drug Dealing overpriced contracts (or ∞) and money laundering) Allegations: • Political slush funds • Unlawful funding of political campaigns (presidential campaigns) • Construction companies’ affairs in other countries are now under scrutiny (e.g., Peru) • Obstruction of justice • Other Government entities (e.g., Eletrobras, BNDES*, Pension Funds*) • 2014 World Cup and the 2016 Olympics “Operation Car Wash” – Main Characters: Allegations Lula – Criminal complaint filed by “Operation Car Wash” Taskforce Dilma Rousseff – Impeached but currently still eligible to hold office Eduardo Cunha -
Brazil's Clean Company Act: How U.S., U.K., and Global Models May Influence Enforcement
Brazil’s Clean Company Act: How U.S., U.K., and Global Models May Influence Enforcement July 14, 2014 1) Introduction Brazil’s new anti-bribery law (Law no. 12.846/2013), often referred to as the “Clean Company Act,” officially took effect on January 29, 2014. This article compares key elements of the Clean Company Act with the U.S. Foreign Corrupt Practices Act (“FCPA”) and the U.K. Bribery Act 2010 (“Bribery Act”) and considers the outlook for enforcement of the bribery offenses in the new law in the context of U.S., U.K., and global trends. In particular, the article highlights the following themes: • The impact of extraterritorial jurisdiction on anti-corruption enforcement; • The various matter resolution tools available to authorities in enforcing the Clean Company Act, as compared to options available to U.S. and U.K. authorities; • The likely influence of U.S., U.K., and global anti-bribery trends on the Brazilian approach to enforcement under the new law. Multinational companies accustomed to the demands of the anti-corruption enforcement regimes of the U.S., the U.K., and relevant international bodies (e.g., the World Bank) will not be surprised by the scope and reach of the Clean Company Act. Nevertheless, they should be attuned to its unique features when appropriately tailoring their anti-corruption compliance programs. Indeed, representatives of relevant Brazilian enforcement agencies have publicly pronounced that enforcement of the new law will be a top priority for the Brazilian government. 2) Overview of the Clean Company Act A. Subjected Entities The Clean Company Act applies to: a) Business organizations in Brazil (whether incorporated or not); b) Any Brazilian foundations or associations; and c) Foreign companies with any presence in Brazil (even if temporary). -
Brazil's Clean Company
August 2013 JONES DAY COMMENTARY In collaboration with Mattos Muriel Kestener Advogados Brazil’s Clean Company law: new risks for Companies Doing Business in Brazil In early July, as millions of Brazilians flooded the in bribery of Brazilian and foreign public officials. The streets to protest against government corruption and ability of Brazilian prosecutors to target companies waste, Brazil took the final steps to enact a landmark under the Law may mean heightened exposure under anticorruption law. On August 1, Brazilian President existing law for officers, directors, and employees Dilma Rousseff signed Law No. 12.846, also known of those companies. The Law also provides for an as the Clean Company Law (the “Law”), which estab - enforcement regime that promises to be expensive lishes a corporate anticorruption regime that shares for companies that might become its targets. characteristics with the U.S. Foreign Corrupt Prac - tices Act (“FCPA”) and the U.K. Bribery Act. The Law The adoption of the Law caps a three-year process imposes strict civil and administrative liability on Bra- that mostly predates the recent public outcry against zilian companies for domestic and foreign bribery. corruption. Its longer aim was to improve Brazil’s International companies with a presence in Brazil are compliance with the OECD Convention on Com - also covered if they engage in bribery within Brazil. bating Bribery of Foreign Public Officials, to which Brazil (although not an OECD member) is a signa - The Law will go into effect on January 29, 2014, 180 tory. Approval of the Law was widely regarded as an days from the date of its publication in Brazil’s Offi - important move to align Brazil with other nations with cial Gazette, and will have important and immediate corporate anticorruption laws on their books, and it implications for companies that operate in Brazil. -
The Anti-Bribery and Anti-Corruption Review
The Anti-Bribery and Anti-Corruption Review Second Edition Editor Mark F Mendelsohn Law Business Research Chapter 3 BRAZIL Adriana Dantas and Luiz Eduardo Alcantara 1 I INTRODUCTION 2013 will be remembered as the year in which Brazil joined the group of countries that have enacted a law that has the potential to severely punish legal entities involved in acts of corruption. !e bill had remained under discussion in the Brazilian Congress for over three years and became Law No. 12846/2013 (the Anti-Corruption Law) 2 on 2 August 2013. !e Law will come into force 180 days following its publication and, during this period, government authorities, companies and the legal community have been actively preparing for a new legal reality that will govern the relationship between private parties and the public administration. Corruption is not a new topic in Brazil. Like most democratic nations, Brazil has adopted administrative, civil and criminal anti-corruption rules that have formed part of the Brazilian legal system for many years. In fact, corruption has been criminalised under the Brazilian Criminal Code since 1830.3 Despite the legal framework, Brazil has always been a country where corruption, if not endemic, is very much present within its large bureaucratic government, at the federal, state and municipal levels. !is reality is caused by a lack of enforcement of the law, which was unable to change a widespread culture of bene"t and corruption throughout all levels of the public administration. It is not by coincidence that Brazil 1 Adriana Dantas is a partner and Luiz Eduardo Alcantara is an associate at BM&A – Barbosa, Müssnich & Aragão. -
Political Capture in the Petrobras Corruption Scandal: the Sad Tale of an Oil Giant
87 Political Capture in the Petrobras Corruption Scandal: The Sad Tale of an Oil Giant Monica Arruda de Almeida and Bruce Zagaris In academic debates about the government’s role in the economy, Petrobras used to be known as the darling exception to the overwhelming empirical evidence against state-owned enterprises (SOEs). Such corpora- tions are notorious for their lack of efficiency, vulnerability to political abuse, and draining of state revenue. However, since March 2014, Brazilians have been inundated with revelations of Petrobras-linked corruption that are considered unprecedented, even for a country so accustomed to corrup- tion scandals. Until this point, experts in Brazilian politics considered Petrobras one of the few successful cases of bureaucratic insulation against political exploitation. However, the company’s corruption investigation has cast doubt on the capacity of SOEs to insulate themselves from politicians, who see these companies as their hens with golden eggs. For Brazilians, the Petrobras case has also led to the realization that kickbacks and other bribery practices are not just likely, but the norm, in business deals in Brazil. Dubbed “Operação Lava Jato” (or the “Car Wash Investigation”) Brazil’s federal police officially launched its investigation on March 17, 2014, after being tipped off by analysts from the Council for Control of Financial Activities (COAF), the country’s financial intelligence unit. The analysts noticed frequent bank account transactions involving large sums Monica Arruda de Almeida is Adjunct Professor at the Center for Latin American Studies (CLAS) at Georgetown University. Her research focuses on international financial crime, with an emphasis on anti-money laundering efforts. -
Petrobras Securities Litigation Demand for Jury Trial
Case 1:14-cv-09662-JSR Document 342 Filed 11/30/15 Page 1 of 223 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK Case No. 14-cv-9662 (JSR) IN RE: PETROBRAS SECURITIES LITIGATION DEMAND FOR JURY TRIAL CONSOLIDATED FOURTH AMENDED CLASS ACTION COMPLAINT Case 1:14-cv-09662-JSR Document 342 Filed 11/30/15 Page 2 of 223 TABLE OF CONTENTS I. PRELIMINARY STATEMENT ........................................................................................ 1 II. NATUREOF THE ACTION ............................................................................................. 7 III. JURISDICTION AND VENUE ......................................................................................... 9 IV. OVERVIEW OF THE EXCHANGE ACT VIOLATIONS ............................................. 10 A. The Exchange Act Parties ..................................................................................... 10 1. Lead Plaintiff .................................................................................................. 10 2. The Company .................................................................................................. 10 3. The Individual Defendants ............................................................................. 11 4. PricewaterhouseCoopers Auditores Independentes ........................................ 14 V. FACTS RELEVANT TO EXCHANGE ACT CLAIMS.................................................. 15 A. The Skewed Bidding Process ...............................................................................