The leader of the opposition in the Senate, Randolfe Rodrigues (Rede-AP), presented this Tuesday (5.Oct.2021) a bill to regulate investments by high-ranking government officials. The revelation that the Minister of Economy, Paulo Guedes, kept the company offshore active while he held the position motivated the proposal to change the law.
.mod-newsletter.full .title, .mod-newsletter.full h1 {font-size:18px;text-transform:none;} input.submit{margin-top: 0.2px !important;} .mod-newsletter.full .title small, .mod-newsletter.full h1 small{font-size:16px;}.mod-newsletter .title, .mod-newsletter
h1{font-family:”Prelo”,sans-serif;}.mod-newsletter.full input[type=text]{font-size:14px;padding: 10px 7px;}.mod-newsletter.full input[type=submit] {padding:9px 0;margin-top:-21px}.mod-newsletter.full {margin:15px 10px; padding:20px 15px 15px; border: 1px solid #d2d2d2; background:transparent; background-color#fff;}.send .container {width:100%;}.content.wp h1, .content.wp h2 .send{margin:0;}@media only screen and (max-width: 1279px){ .mod-newsletter.full h1{font-size:15px;}}.box-newsletter__single{display:-ms-flexbox;display:flex;-ms-flex-pack:justify;justify-content:space-between}. box-newsletter__single .box-newsletter__input{display:-ms-flexbox;display:flex;-ms-flex-direction:column;flex-direction:column;width:70%}.box-newsletter__single .box-newsletter__input input[type=text]{width:92%!important;margin-bottom:5px!important}.box-newsletter__single .box-newsletter__input label{padding-top:9px!important;font-size:8pt}.box-newsletter__single label.error{padding- top:0!important;}@media only screen and (max-width: 1279px){.mod-newsletter.full h1 small{font-size:14px;}}@media only screen and (max-width: 767px){ .mod-newsletter.full h1 {padding-bottom:11px;}}
As revealed the power360 in an article that is part of the series Pandora Papers, by the ICIJ (International Consortium of Investigative Journalists), Guedes kept active the offshoreDreadnoughts International Group Limited even after becoming minister of economy in 2019. The minister’s company was opened in 2014 and is estimated to be worth $9.5 million.
Campos Neto would have its name linked to Cor Assets, created in 2004 with an initial investment of US$ 1.09 million and closed in August 2020.
In Brazil, the legal framework allows the creation and maintenance of offshore as long as they are declared to the Federal Revenue and the Central Bank and the money has a lawful origin. Holders of public offices and functions, however, are subject to rules that prevent self-advantage. The regulations are provided for in the Code of Conduct of the High Federal Administration and on Conflict of Interest Law.
According to the project, it would be “public agents of this highest level of the Federal Executive are prohibited from making investments, in national or foreign territory, of their own resources or those of third parties in an operation that they are aware of due to their position or public function”. here is the whole of the project (488 KB).
Guedes’ company is still active and may have made investments in the last 2 years.
Guedes and Campos Neto say that the offshore are declared to the Federal Revenue. Public service regulations and the Conflict of Interest Law indicate that the 2 most important people responsible for the Brazilian economy may have failed to comply with the procedures demanded of senior federal government officials – which they deny.
In the case of Campos Neto, there are signs that the president of the Central Bank respected the rules in force by not having made investments after taking office. The Economy Minister, on the other hand, did not want to declare anything about it.
Guedes keeps his offshore open. It did not respond directly if it made any changes, and, if so, what was the nature of these operations.
In the preliminary investigation, Aras will gather information about the case, which includes requests for explanations from Guedes and Campos Neto. After that, the PGR analyzes whether it will open an inquiry with the STF (Supreme Federal Court), where ministers of state have jurisdiction.
This article is part of the Pandora Papers series, from ICIJ (International Consortium of Investigative Journalists). 615 journalists from 149 vehicles in 117 countries participated in the investigation.
In Brazil, journalists from the power360 (Fernando Rodrigues, Mario Cesar Carvalho, Guilherme Waltenberg, Tiago Mali, Nicolas Iory, Marcelo Damato and Brunno Kono); of the magazine Piauí (José Roberto Toledo, Ana Clara Costa, Fernanda da Escóssia and Allan de Abreu); gives Public Agency (Anna Beatriz Anjos, Alice Maciel, Yolanda Pires, Raphaela Ribeiro, Ethel Rudnitzki and Natalia Viana); and the website metropolises (Guilherme Amado and Lucas Marchesini).