Corruption scandal in Brazil comes to the international level

Corruption in Brazil has reached epidemic proportions. The corruption scandal that erupted 2.5 years ago, associated with the state oil company Petrobras is gradually waning. Currently, the focus of the society is the largest construction company in Latin America with interests across the region — group Odebrecht. The investigation against this company showed that it corrupted the governments of 12 Latin American countries. According to investigators, several months of carefully interrogating witnesses, analyze the financial documents and Bank transactions, one of the recipients of the bribes was President of Brazil Michel Temer (Temer), which after the resignation of Rousseff has been approved in the office prior to the expiry of her term in December 2018.

In March 2016 the head of the company head, Odebrecht Marcelo (Marcelo Odebrecht), was sentenced to 19 years in prison. The investigation revealed that Marcelo, Odebrecht and the employees of his company have created a widely ramified system of corruption and bribery of officials and systematically engaged in money laundering.

A new milestone was investigating the activities of a secret unit of Brazilian construction conglomerate Odebrecht, which has been called “Department bribes.” According to investigators, the Bank payments in the names of high-level politicians, carried out through nominees, the Bank of Antigua and Barbuda under control. Odebrecht. Shortly after the condemnation of Odebrecht Marcelo in the Brazilian press published a list of coded recipients of bribes. The court of Brazil, decided to conduct a new investigation on again opened circumstances in the global investigation, called “operation Lava Jato”.

The investigators found that Odebrecht and other major construction company in 2007 and merged into one giant construction cartel. It happened after Brazil was awarded the right to host the world Cup in 2014. Cartel members have defined a strategy of participation in the public tenders for works on construction and reconstruction of stadiums for the world Cup and pre-determined what proportion of the state order they will get.

As a result of the agreement, Odebrecht went to the reconstruction of the prestigious Maracana stadium in Rio de Janeiro. It should be noted that the Governor of the state of Rio de Janeiro Sergio Cabral (Sergio Cabral), who held the post from 2007 to 2014, was taken into custody for accepting a bribe in $ 64 million from Odebrecht.

Amnesty accused

As part of operation Lava Jato investigated about 40 criminal cases. The investigation began in 2014. Previously, investigators led the corruption case at Petrobras. Federal police investigating the sensational case, said that members of the criminal financial schemes have stolen from the budget of the company several billion dollars. During the investigation it was established that individual companies bought shares of Petrobras, in return for government contracts. Part of illegally obtained funds went to Finance the election campaigns of politicians, at that time the incumbent of the workers ‘ Party.

Odebrecht was one of the few commercial entities that received the majority of orders from Petrobras. Of the orders received chemical company Braskem, controlled by Odebrecht. The corruption investigation Lava Jato turned into an instrument of political struggle for power, but rather for the deprivation of power of the workers ‘ Party, left, who ruled the country the last 13 years. After months of slander and mass protests organized by right-wing conservative parties and the media under their control, in August 2016, Dilma Rousseff has been dismissed.

After the resignation of Rousseff the course of the investigation in a strange way has changed. A number of conservative politicians, who sought the resignation of Rousseff, was zameshannye in a corruption scandal. Among them, the speaker of the lower house Kunu Eduardo (Eduardo Cunha) — the initiator of the impeachment of President Dilma Rousseff, the Governor of the state of Rio de Janeiro Sergio Cabral, Minister of foreign Affairs of Brazil josé Serra (José Serra).

Jose Serra, as leader of the Party of the Brazilian democratic movement in 2010 I stood as Rousseff, candidate for the presidency. Odebrecht transferred to Serra in a Swiss Bank seven million dollars, while he claimed to have received from the company a little more than 700 thousand dollars. The current President of Brazil, Temer, who took over the presidency in April 2016, was forced to dismiss seven Ministers and several dozen nearby officials accused of corruption.

Now already for anybody not a secret that in Brazil there is absolutely rotten state system. The country has developed a very worrying situation when the policy money covers private business. Any attempt to change the situation are hampered by fierce resistance and sabotage of the ruling class of Brazil. Dilma Rousseff has repeatedly said about the need for deep institutional reform, once in Brazil in 2013, there were mass protests against corruption in the higher echelons of power. However, as observers note, for this she paid with impeachment.

Immediately after the resignation of Dilma Rousseff, members of Parliament began to push through a bill on Amnesty for persons convicted for illegal financing of political parties. The authors of the bill were not disclosed. However, as it became known, in the agenda of the legislative initiative was introduced at the suggestion of the ruling Party of the Brazilian democratic movement. The bill failed due to opposition parliamentarians and mass street protests.

Odebrecht buys impunity

By the end of 2016, the Prosecutor’s office as part of operation Lava Jato initiated 364 proceedings against natural or legal persons. More than 80 people were convicted of involvement in corruption cases. Many Brazilians are asking the questions: how serious is configured to justice to bring the case to its logical end? The reality is that this is unlikely. Currently agreed to cooperate with the investigation more than 40 people in exchange for the commutation or termination of a criminal case.

Against Odebrecht had filed a claim not only in Brazil but also in USA and Switzerland. In December last year, the leadership of Odebrecht reached a settlement agreement with the United States, paying $ 3.5 billion. Moreover, about 80 top managers of Odebrecht in the framework of the court proceedings, testified about criminal activities in 12 countries.

According to the testimony of Odebrecht began the practice of bribery of officials, since 2001. During this time, they spent a huge amount of 788 million dollars. According to the documents released by the U.S. Department of justice, 349 million dollars went for bribes in Brazil, 110,5 million dollars in Mexico and $ 33.5 million in Ecuador. In corruption cases involved offshore zones in the virgin Islands and the Cayman Islands — overseas territory of the UK.

The protracted recession in Brazil

The ex–President of Peru Ollanta Umala (Ollanta Humala) are suspected of receiving bribes from Odebrecht in the amount of three million dollars to Finance his election campaign in 2011. All, the Odebrecht group has spent $ 29 million in bribes in Peru and now the decision of the court she is not allowed to participate in public tenders. In Ecuador, the opposition uses a Brazilian theme to discredit progressive President Rafael Correa (Rafael Correa).

In Venezuela, the Governor Henrique Capriles, an opposition to the government of Nicolas Maduro, is trying to implicate him in corruption cases.

Washington keeps secret the details of the agreement between Odebrecht and the Ministry of justice. At the same time due to leaks in the media on the case it can be concluded that in a number of countries in the “backyard” of the United States, the White house is ready to launch a new diplomatic blow.

The main characters of the current corruption scandal want to keep a good mine at bad game. Odebrecht seeks to avoid trials in 12 countries, where he investigated cases of corrupt ties of politicians and businessmen with the Brazilian company. Brazil actively participates in the world economic forum in Davos, Switzerland, trying, among other things, to save his reputation. On 18 January the attorney General of Brazil, Rodrigo Jano (Rodrigo Janot) assured businessmen that the operation Lava Jato is not directed against capitalist principles, but rather aims to strengthen the market economy.

There is no doubt that the outbreak of the corruption scandal dealt a severe reputational blow to Brazil. At least three billion dollars was stolen from the accounts of Petrobras. Brazilian state development Bank (BNDES), has suspended lending to dozens of investment projects, depriving Brazil of favorable conditions for economic development of the country. The President of Brazil Michel Temer said at the ceremony of inauguration, now that the policy is aimed at creating conditions for economic growth. In fact, the opposite occurs. The economy is still deeper in recession and trade fell to 2002 levels.

Officials teach impoverished populations of austerity, while the oligarchs get richer.