⚽ Football takes a break

Good morning! Today, the Brazilian football league will pause for two weeks. Charges against an Amazonian state governor and a southern senator. And massive drops and hikes in the stock market.

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Brazilian football hits pause

After weeks of hesitation, the Brazilian Football Confederation (CBF) — the sport’s governing body in the country — announced a two-week pause in the national league due to the Rio Grande do Sul floods. The measure concerns the 7th and 8th matchdays of the 38-game schedule, which were scheduled to be played over the next two weekends.

• Before Wednesday night’s decision, only matches involving Rio Grande do Sul teams (three of which playing in the country’s top-flight division) had been suspended until May 27. 

• On May 27, an emergency council made of representatives from clubs and state federations will convene to discuss further moves.

Yes, but … The pause does not affect lower divisions or the domestic cup competition, the Copa do Brasil. Except for games involving Rio Grande do Sul, it’s going to be business as usual for the knockout tournament. 

Behind the scenes. As our reporter Lucas Berti informed, suspending the football league was never a consensus among teams. Powerful clubs located in São Paulo and Rio de Janeiro worry that an already super-packed schedule will become untenable as they juggle two national competitions and continental football. 

• Last week, the Sports Ministry asked the CBF to halt competitions as the country grapples with the devastation in the South region.

 Why it matters. Stadiums in Rio Grande do Sul state were, in many cases, completely flooded. Meanwhile, athletes and club staff members are coping with the devastating effects of the climate emergency — many of which have joined relief efforts.

State of play. For the past two weeks, Rio Grande do Sul has grappled with torrential rainfall, with most of the state facing destructive floods. Almost 150 people have been confirmed dead, with 112 still missing, and over 620,000 people were forced from their homes.

Amazonian governor to face trial

The Superior Court of Justice, Brazil’s second-highest judicial body, decided to accept charges against Governor Gladson Cameli of the Amazonian state of Acre, on the border with Bolivia. Mr. Cameli faces a litany of charges, such as corruption, embezzlement, money laundering, criminal conspiracy, and defrauding public bidding processes.

• Still, the court decided that Mr. Cameli can remain in office while facing these charges. Justices reasoned that the alleged crimes were committed in 2019, and a suspension from office (an exceptional measure in nature) was not urgent.

 Why it matters. In November last year, the Federal Prosecution Office said Mr. Cameli pocketed BRL 6 million (USD 1.17 million) in bribes and led a ring that siphoned BRL 16 million from public accounts after colluding with a local construction company.

Who is he? Gladson Cameli comes from an Acre political dynasty, with his late uncle Orleir having governed the state between 1994 and 1998. Mr. Cameli’s electoral win in 2018 brought his family back to power, ending 20 years of Workers’ Party dominance in gubernatorial races.

• Mr. Cameli supports Jair Bolsonaro but made nods to President Luiz Inácio Lula da Silva of the Workers’ Party after the 2022 election.

Moro trial to begin

The Superior Electoral Court is set to start today a trial that could ultimately unseat Senator Sergio Moro, accused of illegal campaign financing. The Paraná State Electoral Court acquitted him of the accusations, but plaintiffs appealed the decision.

Context. In 2021 and 2022, Mr. Moro tried to get a presidential bid off the ground but was never able to convince voters that he could break the dichotomy of Jair Bolsonaro, the then-president, and Luiz Inácio Lula da Silva, the former two-term president who presented himself as the only candidate capable of unseating Mr. Bolsonaro.

• After switching parties and burning bridges with multiple political groups, Mr. Moro settled for a Senate bid representing his home state of Paraná, which he won with 33 percent of the votes. 

• But coalitions representing both Lula’s and Mr. Bolsonaro’s political groups are trying to get Mr. Moro impeached, saying that his initial presidential bid was a sham that allowed him to hold campaign rallies and spend far more money than senatorial candidates would be entitled to.

 Why it matters. The case against Mr. Moro has all the trappings of a political vendetta. He came to the public forefront after serving as the lead judge in Operation Car Wash — a massive, years-long anti-corruption task force that exposed deeply rooted corrupt dealings in every major Brazilian political party. 

• Last year, Deltan Dallagnol, a former Car Wash star prosecutor-turned-politician, was impeached in a highly controversial case. 

Oh, the irony. While unequivocally exposing how all major parties benefited from illegal campaign funding, Operation Car Wash often disregarded due process and acted politically against suspects. After being accused of lawfare for years, some of the operation’s main proponents are now the ones complaining of unfair treatment.

Stock market winners and losers

State-controlled oil and gas giant Petrobras lost a whopping BRL 34 billion in market value on Wednesday alone, as investors reacted poorly to the government’s decision to swap the company’s CEO. Jean Paul Prates was sacked and will be replaced by Magda Chambriard, a former head of Brazil’s National Oil Agency.

 Why it matters. Under the watch of Mr. Prates, Petrobras saw its share prices double and managed to have a positive relationship both with unions and minority shareholders. Ms. Chambriard comes in immediately having to contest claims that she will be a government stooge.

Flipside … While Petrobras shares melt down, those of Brazilian planemaker Embraer have gone through the roof this week. The surge comes after rumors spread that Indian aviation conglomerate InterGlobe Aviation is in talks to order at least 100 Embraer jets. This week alone, share prices rose by 16.3 percent.

Quick catch-up

President Lula on Wednesday announced aid for Rio Grande do Sul flood victims. The main goal of the federal plan is to buy new homes for low-income families that have been displaced and give them some forms of spending power. 

The state of Amazonas selected five companies as winners of a bidding process authorizing the development of carbon projects on 11.9 million hectares of public land — the biggest such deal ever made by a government entity.

Auren, an energy company controlled by investment group Votorantim and Canada’s CCP Investments, has concluded its acquisition of AES Brasil. The deal makes Auren the third-largest power generation company in Brazil, behind only Eletrobras and Engie.

Justice Minister Ricardo Lewandowski hosted right-wing lawmakers concerned about a federal investigation into the spread of disinformation around the Rio Grande do Sul floods. The attendance list included Eduardo Bolsonaro, son of former President Jair Bolsonaro.

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