Brazil - 01

Brazil: Congress Likely to Block Janot’s Parting Shot at Temer

Janot’s new criminal charges against Temer and a number of the latter’s closest aides derive from the previous findings linked to the JBS scandal. In these new charges, Temer is accused of obstruction of justice and organized crime. Janot claims that Temer led a criminal organization that sought to extract illegal financial concessions from a

Brazil - 02

Brazil: TAG Divestment Proposal Likely to Prevail Over Injunctions

Last week, Brazil’s Petrobras announced that it has begun a process to sell off 90% of TAG (Transportadora Associada de Gas). The company, operated by Transpetro (a Petrobras subsidiary), owns the largest network of gas pipelines in the country. Covering the northern, northeastern and southeastern regions, it accounts for roughly 47% of Brazil’s gas infrastructure.

Brazil - 03

Brazil: Nullification of JBS Plea Bargain: Impact on Lava Jato Investigations

On 4 September, Brazil’s Attorney General Rodrigo Janot announced that executives of business conglomerate JBS had hidden crucial audiotapes from the authorities, which could result in their plea bargain being nullified. Although the new audiotapes have not been made public, Janot stated that the content of the recordings are “extremely serious” and that an investigation

Brazil - 09

Brazil: Pledge to Privatize Eletrobras Underscores Meirelles’ Presidential Ambitions

The announced privatization of Eletrobras surprised markets, causing the company’s shares to soar 50%. Brazil’s government has stated that it will no longer control the company in 2018, although the method of privatization and how much of the government’s 51% voting stake will be sold remain unclear. The company operates throughout the supply chain, with

Brazil - 04

Brazil: Temer Breathes Easier as Congress Blocks Criminal Charge

Last week, the Chamber of Deputies voted to prevent the corruption charge against Temer from advancing to the Supreme Court for consideration. 263 deputies voted in favor of Temer, while 227 voted against him. (At least two thirds of the lower house was required in order to push the criminal charge forward.) Ever since the

Brazil 6

Brazil: Arrest of Former CEO Unlikely to Slow Petrobras’ Recovery

Aldemir Bendine, the former CEO of state-owned oil company Petrobras and state-owned bank Banco do Brasil, was arrested last week within the context of the Lava Jato Federal Police investigations. Bendine (see our Personality of the Week) is suspected of having received $3mn reais (roughly $1mn) in bribes from business executives of the construction conglomerate

Brazil - 01

Brazil: Lula Sentencing Deepens Political Polarization, but Oil Policy Appears Secure

Lula and his late wife Marisa Leticia were charged with receiving approximately $1.1mn in illegal financial benefits from a construction company, OAS, for the renovation of a beachfront apartment in the coastal town of Guaruja (in Sao Paulo state). In return, according to the prosecution, Lula politically favored OAS in contracts with Petrobras. After a

Brazil - 02

Brazil: Possible IPO for Petrobras’ Distribution Unit: Opportunity Outweighs Controversy

On 22 June Petrobras CEO Pedro Parente stated that he will soon ask the board to deliberate on an IPO for the company’s distribution arm, BR Distribuidora. In statements later divulged in the local press, Parente stressed that the timing seems right for the move, given the significant number of IPOs in Brazil this year.

Brazil - 03

Brazil: Temer Charged with Corruption: Political and Economic Implications

This week the Attorney General’s Office filed a criminal charge against President Temer, of the Brazilian Democratic Movement Party (PMDB), for involvement in corruption. According to Attorney General Rodrigo Janot (see our Personality of the Week), there is sufficient evidence to prove that Temer took part in a bribery scheme through Rodrigo Rocha Loures, another

Brazil - 09

Brazil: Superior Electoral Tribunal Acquits Temer, but Further Challenges Loom

Temer was on trial for illegal campaign financing accusations that surfaced in 2014, when he was vice president during Dilma Rousseff’s presidency. But while the TSE acquittal is an important lifeline for Temer in his fight to keep the presidency, the trial was only one of several judicial threats that he must face in the