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

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

Ecuador Buys 3 Jets from Brazil’s Embraer

Brazilian aircraft manufacturer Embraer announced today it firmed the sale of three Embraer 170/190 ...

My Turn

My take on Philip Mizewski’s article "In Defense of Brazil" published in the June ...

Cocaine Consumption in Brazil Stops Upswing

Cocaine consumption remained stable in Brazil between 1997 and 2004, after a period of ...

Brazil Uses Courts to Reimpose Prior Censorship on the Press

A judge in the Brazilian Northeast has forbidden a newspaper from publishing stories on ...

Second Largest Coffee Producer State in Brazil to Double Production

In order to increase productivity and improve the quality of Arabica coffee, which originated ...

Latest Brazilian Corruption Scandal Involves Several Army Officers

It’s getting harder and harder to keep abreast of all the big scandals going ...

Brazil Converts US$ 21 Million Debt to US into Project to Protect Forests

Brazil and the United States signed an agreement in which Brazil will use US$ ...

Brazil Goes on Mourning and Arrests Owner of Nightclub Where Fire Killed 231

The Brazilian police have arrested today one of the owners of the nightclub Kiss ...

Saudi Arabia Gets Five More Brazilian Embraer Jets

Embraer, a Brazilian aircraft manufacturer, issued a release July 14 confirming five options for ...

Crazy? Eager to Unseat Obama Republicans Might Suggest President Is Really an Illegal Brazilian

It’s hard to watch the vitriolic anti-Obama rhetoric and be a mere spectator to ...