Odebrecht executive cites Temer, dozens of other politicians for bribery and illicit campaign funds in plea deal

Cláudio Melo Filho, former Vice President of Investor Relations at Odebrecht, the embattled construction firm under investigation for its involvement in bribery and cartel activity in Operação Lava Jato, cited dozens of politicians in a testimony as a part of a plea deal on 9 December 2016 (Folha de S. Paulo, Valor). Melo Filho said the company paid politicians to influence the passage of a bill that would provide tax concessions to producers of ethanol and the chemicals industry, allowing Odebrecht to save on taxes. The list of politicians includes President Michel Temer, to whom Melo Filho said the firm paid nearly US$3 million in bribes and illicit campaign funds, Chief of Staff Eliseu Padilha (US$1.2 million), Geddel Vieira Lima (minister under both Temer and Lula, US$1.75 million), former President of the Chamber of Deputies Eduardo Cunha (US$3.4 million), current Chamber President Rodrigo Maia (US$178,000), Senate President Renan Calheiros (US$1.8 million), Senator and leader of Temer’s government in Congress Romero Jucá (US$5.7 million), and Jaques Wagner (minister under Dilma Rousseff, US$6.1 million). Melo Filho stated Romero Jucá may be considered the front man for the solicitations. Many of the politicians have denied the accusations, including Temer (Valor). 

The accusations will have significant consequences for the Temer administration, which took power after the opening of the impeachment process of Dilma Rousseff in May 2016, finalized in August 2016. The Temer administration began with low public support, and polls from 7 December show a sharp decrease in support for the new administration. Datafolha, Folha de S. Paulo’s polling service, revealed that 63 percent of Brazilians want Temer to resign so the country may hold a direct presidential election. Temer would need to resign by 31 December 2016 for this to be possible under Brazilian law. Datafolha reported that 51 percent disapprove of the administration, up from 31 percent in July 2016. The testimony also comes as new economic data from the Brazilian Central Bank has continued to revise down growth projections given at the start of the new administration’s mandate. With low support and mounting evidence of corruption, on top of weak economic growth and fragmented support in Congress, the administration’s mandate has become even more complicated.