39 kilos of cocaine in the presidential convoy

39 kilos of cocaine in the presidential convoy

Yesterday, 38-year-old Air Force Sergeant Manoel Silva Rodrigues was arrested in Seville with 39 kilos of cocaine in his hand luggage. He was a flight attendant in presidential convoys, and part of a backup team accompanying President Jair Bolsonaro to this year’s G20 Summit in Osaka. The case exposed worrisome security problems—and could reveal a wider network of drug trafficking using Air Force planes. As Vice President Hamilton Mourão said, “[the sergeant] didn’t buy 39 kilos of cocaine on the corner, for personal consumption.”

The arrested officer has made at least 21 international trips with the Air Force Special Transportation Group, several of which with the presidential staff—he has accompanied Brazil’s last three presidents.

According to some reports, the Air Force has already identified the glitch: the sergeant didn’t have his bag scanned at the Air Force Base in Brasília—which is mandatory. According to government officials, that suggests he may have an accomplice. The case becomes even more confusing due to the government’s multiple versions on the episode, following the arrest.

• Initially, VP Mourão said the sergeant would be in the crew for Mr. Bolsonaro’s flight back home (which pissed off the president).

• Yesterday evening, however, the government said the officer had no relation with the presidential staff. If that is the case, what was he doing on an Air Force plane in Seville—where the president would make a stopover before heading to Japan?

• Go deeper: The cocaine in Spain stays mainly on the plane 

Senate approves bill to punish prosecutors and judges

Over the past two and a half weeks, The Intercept has published, bit by bit, private messages exchanged between prosecutors and former Judge Sergio Moro from during Operation Car Wash. The content suggests Mr. Moro coached the prosecution in the case against former President Lula (which is illegal). And while the leaks haven’t yet benefited Lula, they created momentum for the Senate to pass a bill punishing abuses from prosecutors and judges.

The bill had been presented in 2016—and received harsh reaction from members of the Justice system, which accused lawmakers of trying to pass a gag order on anti-corruption efforts. Now, as Mr. Moro and Op. Car Wash lose popularity, the political climate has shifted. Even so, senators approved a toned-down version of the project, punishing only cases where misconduct is intentional—and not just if members of higher courts disagree with verdicts or procedures, as initially drafted.

Justice Minister Sergio Moro—who has been historically against the bill—attended a dinner with senators who voted for the proposal. Senate President Davi Alcolumbre, however, did not show up. Earlier this week, he said that the Car Wash leaks, if true, show Mr. Moro breaking ethical boundaries, and said the minister would be impeached or arrested if he were a member of Congress.

• Go deeper: Car Wash leaks raise concern for cybersecurity in Brazil

G20: Priorities for Brazil

President Jair Bolsonaro makes his debut in the G20 Summit with a packed schedule. So far, he has confirmed meetings with leaders from China, India, Saudi Arabia, France, and the U.S. Mr. Bolsonaro’s number 1 priority should be changing the international perception of his administration—which has been mostly negative. During the World Economic Forum, the president gave a speech of only 6 minutes, and stayed mostly alone during lunches and dinners—instead of meeting with the high-profile attendants.

Mr. Bolsonaro’s environmental policy should be the major point of criticism of the Brazilian leader—and has started to interfere in trade. The French government argues that the European Union should take a harsher stance in negotiations with Mercosur, under the argument that Brazil has failed to respect the principles set by the Paris Climate Change Accords.

German Chancellor Angela Merkel said she hopes for a “straight talk” with him about the increase in deforestation levels in Brazil. To which Mr. Bolsonaro responded: “We are an example to be followed by Germany. Their industry continues to be [based on] fossil fuels, with part of it [being powered by] coal.”

• Go deeper:VP Mourão, a pragmatic approach for Brazilian foreign affairs

Pension reform delayed

The House Special Committee analyzing the pension reform is unlikely to vote on the bill this week. Speaker Rodrigo Maia had set yesterday as a target—in order not to create problems for a two-round roll call vote at the floor before Congress’ July recess. But struggles between the government and lawmakers have created a stalemate.

The government has promised to finance projects presented through budgetary amendments by members of Congress who support the reform. But lawmakers want the funds before the vote, for a lack of trust that the administration will keep its word. It didn’t help that Economy Minister Paulo Guedes reportedly called Congress a “corruption machine.”

But there’s yet another problem. The president’s party is proving to be a major roadblock to the reform. The Social Liberal Party is essentially made up of members of the so-called Bullet Caucus, which defends the interests of law enforcement agents. They want police officers to benefit from the same privileges now enjoyed by the Armed Forces—which creates unnecessary tension and makes the bill’s approval difficult.

Also noteworthy

Tech 1. An appellate court confirmed fines against Facebook for not giving investigators conversation records of people suspected of integrating a drug trafficking ring—but reduced the penalty amount from BRL 2bn to BRL 23m. This is just the latest in a series of clashes between judges and the company—which has included decisions to suspend WhatsApp from operating nationwide, to the temporary arrest of Facebook’s Latin American VP in 2016.

Tech 2. Brazil’s antitrust authority has acquitted Google from the accusation of skewing its search algorithm to benefit its own services, to the detriment of competitors. In 2015, Google was fined EUR 2.4bn in the European Union for the same practice, but authorities in Brazil said there was no proof that Google tweaked its search engine to engage in predatory competition. 

Trans people. Supreme Court Justice Luís Roberto Barroso has ruled that trans women in prison should be transferred to female facilities. He said the decision is necessary to respect the inmates’ right to dignity. The decision is now in force, but must be confirmed by the entire court. A trial date has not yet been set.

Gas. The federal administration is using money raised from the deepwater pre-salt oil reserves as an incentive for state administrations to open up their local gas markets to private groups. The Economy Ministry believes the move will cut prices in half. Yesterday, the House approved new rules for the money from the pre-salt—reducing investments in healthcare and education, and giving more money directly to states and municipalities.

Car Wash. Federal Judge Luiz Antonio Bonat, the current overseer of Operation Car Wash, has frozen BRL 78m in assets belonging to former President Lula (who has been in jail since April 2018 for corruption and money laundering). The amount refers to alleged bribes the Odebrecht group paid to the Workers’ Party. Lula himself is accused of pocketing BRL 12.5m—in the form of a flat and a piece of land on which the Lula Institute was built.

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