Brazilian federal police on June 19 executed 18 search and seizure warrants in the capital Brasilia, Bahia state, and São Paulo state as part of an expanding corruption probe linked to Banco Master.
One of the warrants targeted Senator Jaques Wagner, 75, a former governor of Bahia who currently helps lead the ruling Workers' Party coalition in Congress. Wagner is a close ally of President Luiz Inacio Lula da Silva.
The raids are part of an investigation into financial “irregularities” involving the former lending bank Banco Master. The bank was ordered into liquidation by a Brazilian court last year, and its owner, Daniel Vorcaro, was arrested in March on charges of fraud, money laundering, and other crimes.
Brazil's Supreme Court authorized the searches so investigators could examine “possible illegal relationships” between Banco Master and Senator Wagner. The court added that Wagner may have received “illicit economic benefits” through his ties to the bank, including access to a private jet and compensation worth millions of dollars along with an apartment.
In return, Wagner is accused of lobbying for the bank's interests by promoting a failed constitutional amendment proposal to increase the amount that could be insured by a fund financed by the bank during a crisis.
Wagner has denied any wrongdoing, including receiving money from Banco Master. On social media, he wrote: “My assets are clean,” adding that he received an “encouraging phone call” from President Lula, who expressed “confidence” in him. The senator's Workers' Party bloc also issued a statement supporting Wagner.
The scandal is widening, touching both sides of Brazil's political spectrum and could become a factor in the upcoming presidential race in October. In May, The Intercept Brasil published a series of allegedly leaked WhatsApp messages between Senator Flavio Bolsonaro, a right-wing presidential candidate, and Vorcaro. The messages purportedly showed Bolsonaro seeking financing from Vorcaro for a film about the life of his father, former President Jair Bolsonaro, who is serving a 27-year sentence for undermining Brazil's democracy.
Senator Bolsonaro, the former president's eldest son, denies any misconduct and maintains he was simply “a son seeking PRIVATE funding for a PRIVATE film about his father's life.”
While recent polls have shown the two candidates neck-and-neck, a new CNT/MDA survey suggests President Lula may be leading, with 49% of respondents backing him in a direct face-off with Bolsonaro, compared to 36.8% for the right-wing senator.
To shore up support, Senator Bolsonaro has unveiled a 12-point priority list for his government if elected, including building five new maximum-security prisons, strengthening border patrols to curb illegal immigration, lowering the age of criminal responsibility from 18 to 16, and designating criminal networks such as Comando Vermelho and Primeiro Comando da Capital as terrorist organizations. Crime is expected to be the top issue in the October election.
