The list that haunts Brasília

BRAZIL POLITICS - Report 24 Mar 2016 by Murillo de Aragão and Cristiano Noronha

A leaked list of 200 legislators from 18 parties (including the PMDB, PSDB, PPS, PCdoB and DEM) who received bribes from Odebrecht Infraestrutura was received with apprehension in Brasília. The document is part of the 23rd phase of the Lava Jato Operation, focused on João Santana, responsible for the marketing campaigns for Lula (2006) and Dilma (2010 and 2014).

The impact of the leak was even greater considering important leaders of the PSDB – José Serra and Aécio Neves, who are likely candidates for the presidency in the next elections – are included in the list.

After deeper examination, it is unclear whether the payments listed are electoral donations or bribes. There is speculation that they are “occult donations,” resources delivered to parties legally, then delivered to candidates.

The list tarnishes the opposition, but in the short term it does not improve the government’s situation, as the government remains very fragile and seemingly unable to react. The vice president of the Republic, Michel Temer, benefitted from the fact that his name was not included in the list.

The leak increases expectations for a plea bargain deal for Odebrecht executives. Many obscure aspects of electoral campaign financing could be clarified and cause further turbulence in the political world.

The first development following the leaked list will be a closer examination of the names included in the list. Odebrecht will have to make a pronouncement on the matter, confirming or denying the list’s content, how the money was delivered to each legislator, and if the operation respects electoral regulations.

The tension added by this episode is a consequence of the insecurity regarding the future of many politicians at a time when we are on the cusp of the impeachment proceedings, the municipal elections and important political positioning ahead of the 2018 elections.
Aside from plea bargains for Odebrecht executives, which have no date for approval or release of testimony, two short term events may interfere in the progress of the impeachment proceedings: the Federal Supreme Court decision on Lula’s appointment to the Civil House and the PMDB’s decision to leave the governing coalition.

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