BRAZIL’S JUDICIARY BLOCKS R$ 4.2 BILLION IN CONTROVERSIAL FUNDS

New Chapter

Dino’s decision to suspend the amendments again marks another chapter in the ongoing dispute between the minister and lawmakers over the payment of these funds. In August, Dino had blocked the execution of these resources but later lifted the suspension in November after Congress approved a bill introducing new transparency rules. The new suspension was based on a writ of mandamus filed by the PSOL party, challenging an attempt by the Chamber of Deputies to release R$ 4.2 billion in committee amendments without the approval of congressional committees. A letter sent by the Chamber to the government on the 12th of this month altered the allocation of part of these committee amendments. The document, signed by 17 party leaders, requested the release of funds blocked since August by Dino. However, lawmakers accused Chamber President Arthur Lira (PP) of using the maneuver to benefit allied mayors.

Violation of the Law

A law passed by Congress earlier this year to address the crisis stipulates that committee amendments can only be executed if approved by congressional committees, among other criteria. However, the funding request submitted to the government, with Lira’s endorsement, only included the signatures of 17 leaders, without the required analysis by the thematic groups.

Investigation

In his decision, Dino included statements from lawmakers who reported irregularities in the letter sent by the Chamber and ordered the opening of a police investigation. The minister instructed the Federal Police to hear the testimonies of Senator Cleitinho Azevedo (Republicans-MG) and Representatives Adriana Ventura (Novo-SP), José Rocha (União-BA), and Glauber Braga (PSOL-RJ). In a Senate plenary session, Cleitinho claimed that lobbyists were roaming Senate corridors negotiating the diversion of parliamentary amendments. José Rocha, who chairs a Chamber committee, stated that the reallocation of funds benefiting Alagoas was done without his committee’s consent. Adriana Ventura also denounced the maneuver to release funds serving specific interests without deliberation by thematic groups.

Chamber’s Response

On Friday (27/12), the Chamber presented a new justification for Minister Flávio Dino’s questions regarding the payment of parliamentary amendments. In a 16-page document, the Chamber argued that it had followed government opinions to release the R$ 4.2 billion in committee amendments. It also emphasized that this type of funding is not mandatory and can be executed at the Executive Branch’s discretion.

Federal Police

On Tuesday (24/12), the Federal Police opened an investigation into alleged irregularities in the release of R$ 4.2 billion in parliamentary amendments scheduled for payment by year’s end. The investigation was initiated under Minister Flávio Dino’s orders and will be led by the Directorate of Police Intelligence (DIP) in Brasília, responsible for sensitive cases, such as the inquiry into the coup attempt planned in late 2022.

Released Funds

Minister Flávio Dino reiterated his criticism of the Chamber of Deputies’ arguments regarding parliamentary amendments and stated that the need for a Federal Police investigation “becomes clearer by the day.” However, Dino authorized the partial release of blocked funds to prevent harm to cities. In a decision on Sunday (29/12), the minister allowed the execution of committee amendments already committed before the R$ 4.2 billion suspension. He also permitted the allocation of health-related amendments until 31 December and the movement of funds already deposited in health area accounts until 10 January.

Disguised Amendments

As the deadline for allocating 2024 budget funds approaches, the Secretariat of Institutional Relations, led by Minister Alexandre Padilha, began using a specific allocation from the Ministry of Health to distribute funds to lawmakers without identifying the recipients or cities. This strategy, known as “disguised amendments,” comes amid congressional dissatisfaction over the amendment block ordered by Minister Flávio Dino last week. A total of R$ 2.5 billion is being distributed.

Analysis:

The recent suspension of R$ 4.2 billion in parliamentary amendments by Minister Flávio Dino of the Supreme Federal Court (STF) underscores the growing tension between Brazil’s judiciary and legislative branches over public resource allocation. Dino’s decision, based on the non-compliance with transparency criteria agreed upon by the Court, Congress, and the Executive, reflects broader efforts to ensure accountability in the use of parliamentary amendments. However, this intervention has reignited debates about judicial overreach and its impact on legislative autonomy, highlighting the delicate balance of power in Brazilian politics.

At the core of the controversy is the lack of adherence to legal and procedural standards. Parliamentary amendments, intended to allocate funds for regional and local projects, have frequently been criticized for fostering clientelism and serving political interests over public needs. The alleged bypassing of congressional committee approvals, as facilitated by Chamber President Arthur Lira, reveals how these amendments can be manipulated to benefit political allies.

Minister Dino’s decision to involve the Federal Police in investigating irregularities marks a significant step toward addressing systemic issues in allocating these funds. By focusing on the roles of influential lawmakers and the activities of lobbyists, the investigation may uncover deeper patterns of misuse. While this move demonstrates a commitment to combat corruption, it also risks deepening political polarization within Congress.

Sources: A Folha de SP [1], [2], [3], [4]; O Globo [1], [2], [3], [4], [5], [6].