Brazil Corruption Probe Expands to Hundreds of Individuals
A major corruption probe in Brazil has expanded to include hundreds of individuals, including several high-ranking politicians and former presidents. The investigation was launched after employees of the construction company Odebrecht confessed to bribing government officials.
Key Figures Under Investigation
- Four former presidents
- Eight ministers
- Over 70 members of Congress
- Three governors
- Former President Luiz Inacio Lula da Silva, sentenced to 12 years in prison for corruption and money laundering in 2018
- His successor, Dilma Rousseff, under investigation along with several other high-ranking politicians
Economic Consequences
The probe has had significant economic consequences for Brazil, causing a decline in investor confidence and leading to a recession in the country. The real, Brazil’s currency, plummeted 8% after the release of secretly recorded audio that allegedly shows President Michel Temer authorizing hush money payments to a former speaker of Congress.
Investigation Continues
Despite the corruption allegations, Temer has pressed on with his economic reform program, which includes austerity measures aimed at reducing government debt. However, experts doubt that he can move forward with reforms amid the ongoing investigations.
The companies at the center of the scandals, including Petrobras, have been hit hard by the probe, losing billions in market value and facing legal settlements and other costs related to graft.
Outlook Under New Government
The investigation is expected to continue under the new government of President-elect Jair Bolsonaro, who has promised to crack down on corruption and crime. However, many analysts fear that his iron-fist policies may fuel violence against the state and cause Brazil’s prison population to balloon.
Key Developments
- Hundreds of individuals, including high-ranking politicians and former presidents, are under investigation for corruption.
- Former President Luiz Inacio Lula da Silva is facing a 12-year sentence for corruption and money laundering.
- The probe has caused significant economic damage to Brazil, leading to a recession and decline in investor confidence.
- President Michel Temer has been accused of corruption and obstruction of justice, but has survived an impeachment vote.
- The new government of President-elect Jair Bolsonaro is expected to continue the investigation and implement tougher anticorruption measures.