According to allies, enemies use offshore to erode the minister’s image; The increase in public spending with the upcoming elections meets with resistance from the head of the economic team and displeases the political class
Minister of Economy, Paulo Guedes, comes under political pressure after disclosure of participation in offshore
Disclosure of participation in a company based in the British Virgin Islands, famous fiscal paradise, increased pressure on the Minister of Economy, Paulo Guedes, at the highest level since he took office in January 2019. economic team denies any wrongdoing and claims that its society in a offshore it was declared to the authorities and to the Public Ethics Commission. Guedes, who is traveling to the United States for a series of meetings of the International Monetary Fund (IMF) and the G20, was summoned by the Chamber of Deputies to provide clarifications. The date of the hearing has not yet been confirmed. THE Young pan, allies of the minister say that enemies — including people close to the government — are using the repercussion to erode Guedes’ image. The reason would be the resistance of the person responsible for the Economy in defending the spending ceiling. Rumors in Brasilia in recent days indicated a poll by the former secretary of the National Treasury, Mansueto Almeida, to take over the ministry. Almeida, however, stated that there was no approach by emissaries from the federal government.
According to aides, the proximity of the elections increases the efforts of the political class to increase spending on works and investments. The movement aims to please the bases to ensure a new term or to lock in the candidate’s image in the 2022 race. To allies, Guedes has stated that he will not give in to pressure and that he will remain in office. The only condition for him to disembark would be precisely the break with the current policy of respect for the spending ceiling and the commitment to public accounts. The extension of the emergency aid symbolizes the tension movements. While government wings defend the extension of payments, the economic team opposes and claims that there is not the nature of unpredictability that would justify the opening of a new extraordinary credit to cover expenses. The debates about the benefit, which ends at the end of this month, are still mobilizing members of the Union and the Legislative.
In addition to the economy minister, a series of documents released by the International Consortium of Investigative Journalists (ICIJ) revealed that the president of the central bank, Roberto Campos Neto, was a partner in another venture abroad until August 2020. Brazilian legislation allows the opening of offshores, as companies hosted in countries or territories with low taxation or tax exemption are called, as long as the data is transferred to the Internal Revenue Service. The Code of Conduct of the High Federal Administration, however, prohibits high-ranking employees from holding investments, inside or outside the country, that may be affected “by a government decision or policy about which the public authority has privileged information, due to of the position”. Guedes said that criticism is part of the political “noise” and should increase as the election year approaches. Guedes and Campos Neto deny irregularities. The lawyers for both have already filed petitions with the Attorney General of the Union (PGR) to clarify the facts.