Corruption Scandal in Brazil Also Brings Down Federal Savings Bank’s Chief

Brazzil Magazine covers

The downfall of Brazil’s Minister of Finance, Antonio Palocci, was sealed when it was discovered that information about a bank account had been made public by someone in the government in violation of Brazil’s bank secrecy laws.

The bank account (actually a passbook savings account) that was violated belonged to Francenildo Santos Costa, a caretaker-gardener who contradicted testimony given by minister Palocci.

Costa testified that he had seen Palocci several times in a house believed to be a center of prostitution and distribution of illegal money, while the fallen minister denied having ever been to the house.

As a result of the violation of bank secrecy laws, Jorge Mattoso, the president of the state-run Federal Mortgage and Savings Bank, where Costa had his account, has been indicted by the Federal Police. He is charged with what is called violation of bank secrecy laws.

Mattoso denies breaking the law and after testifying to the Federal Police he resigned as president of the Caixa.

ABr

Tags:

You May Also Like

Brazzil Magazine covers

American Jewish Committee Applauds Israel-Mercosur Ample Trade Accord

The first ever trade agreement between Mercosur, the South American trade group led by ...

Brazzil Magazine covers

Brazil Industry Enters Brazil-Uruguay Dispute over Itaipu Hydroelectric Plant

At the heart of a debate this Wednesday, May 27, between Brazil's main industrial ...

Brazzil Magazine covers

Washington’s Nightmare Come True: Castro Celebrated by Brazil and South America

Brazil and Argentina are already the number one and two economies in South America, ...

Brazzil Magazine covers

Brazilian Software Becomes a Hit in Europe and Japan

The dynamics from the technology sector is great and ends up creating market niches ...

Brazzil Magazine covers

Soy and Meat Lead Brazil’s Record Farm Exports

Brazil’s farm exports reached a historical high of US$ 20.2 billion in the first ...

Brazzil Magazine covers

Brazil’s Lula Says There’s Enough Money to Settle 400,000 Farming Families

The Brazilian federal government plans to allocate US$ 4.5 billion for the National Family ...