| The issue of corruption has, for a long time, been | | | | than currently exist which, in turn, will filter into |
| an unfortunate characteristic of Brazil and a | | | | the economy and business world. Many |
| concern of international investors and business | | | | campaigners also state that the punishment for |
| people. With the most prominent forms appearing | | | | corrupt politicians needs to be greater - many |
| in the country's political system, below are some | | | | cases continue to go unnoticed and trials can take |
| short descriptions of the most well known cases: | | | | long periods of time within which corrupt politicians |
| - Fernando Collor (president from 1990 to 1992) | | | | can renew their careers. |
| was exposed as having undertaken a number of | | | | At the same time, it is worth noting that several |
| corrupt extortions in a fairly unsubtle manner and | | | | Brazilian commentators debate that modern day |
| subsequently resigned to avoid impeachment. In | | | | principles of decency, avoidance of greed and |
| 1994, he was acquitted of corruption on the | | | | abuse of power are emerging. According to Jorge |
| grounds of inadequate evidence and is now back | | | | Gerdau, chairman of Grupo Gerdau, one of Brazil's |
| in the Brazilian Senate. | | | | largest steelmakers: "There is a historical, cultural |
| - In 2002, $BRL 1.3 million was uncovered in a | | | | problem of a certain backwardness which is very |
| police raid at presidential hopeful Roseana Sarney's | | | | hard to overcome but there is also increasing |
| husbands office. Despite the controversy at the | | | | public demand for transparency and respect for |
| time, she is back serving as state governor of | | | | the electorate." |
| Maranhao. | | | | Transparencia, a Sao Paulo based NGO, claims |
| - The 'Mensalo' affair of 2005 saw the chairman | | | | that although political bribery does occur, some of |
| of the Brazilian Labour Party (Partido Trabalhista | | | | the money is in fact used to fund election |
| Brasileiro, PTB) - Roberto Jefferson - being | | | | campaigns. Politicians often feel the need to |
| implicated in a bribery case. A Parliamentary | | | | bypass Brazil's orthodox campaign finance laws to |
| Commission was set up where Jefferson stated | | | | further their chances of gaining seats in the |
| that there were several MPs receiving money to | | | | Senate. |
| vote for specific legislation to be put in place. In | | | | In late 2009, President Lula signed a bill |
| the same period, campaign manager Duda | | | | encouraging members of the public to report acts |
| Mendona admitted that undeclared and illegal funds | | | | of corruption whilst, at the same time, offering |
| (derived from private sources and laundered | | | | support and protection for those that do. Indeed, |
| money through an advertising agency) were used | | | | most of Brazilians want to see corrupt politicians |
| to finance the PTB electoral victory of 2002. | | | | and people in power exposed and, in turn, more |
| - In 2009 Federal District governor, Jose Roberto | | | | grass roots organisations are appearing across the |
| Arruda, was caught handing bags of money to his | | | | country. The 'Arruda Out' campaign (run by |
| legislator allies. What made this case particularly | | | | student groups) was an excellent example of the |
| notable was the fact that that when Arruda's | | | | power of self-creating groups taking to the |
| behaviour was exposed - the news was made | | | | streets to call for a more ethical Brazilian political |
| widespread throughout the country and the | | | | system (the Arruda Out campaign attracted over |
| politician was publicly arrested and placed in | | | | 30,000 members). The leader of the campaign |
| custody: a first in Brazil's history. | | | | believes that the country is moving in the right |
| Whilst a 2010 study by German NGO | | | | direction - particularly with regards to media |
| Transparency International pointed to Brazil leading | | | | exposure as well as the internet allowing news to |
| ahead of its BRIC counterparts (Russia, India and | | | | be spread quicker and easier. The fact that |
| China), the recent Index of Economic Freedom | | | | Arruda was placed in public custody should leave |
| stated that uncontrolled corruption amongst the | | | | an impression on future generations of politicians |
| political elite remains one of the main factors | | | | to not impeach the law for their own gains. |
| impeding the country's excelled growth. Many of | | | | In the business community, there are more |
| the Brazilian public believe that it is one of the | | | | companies wishing to decrease the level of |
| main problems that the country faces. | | | | corruption - one particularly successful organisation |
| According to Levy Brandao, leader of the | | | | is the Pacto Empresarial pela Integridade e Contra |
| campaign to oust Jose Arruda, the root causes of | | | | a Corrupto (the Business Pact for Integrity and |
| the problem are a lack of whistle-blowers and | | | | Anti-Corruption) which has over 1,300 members |
| public transparency. He believes that, for Brazil to | | | | and rising, including most of Brazil's major |
| truly be able to grow sustainably, the political | | | | companies. |
| system needs to instill higher ethical standards | | | | |