Good morning! Today, we explain the Senate crisis within the president’s party. Plus, the government’s silent move on environmental reserves. How Brazilian markets performed. And Brazil’s unpaid dues to the UN. (This newsletter is for platinum and gold subscribers only. Become one now!)
A Senate crisis cracking the president’s party
As early as this week, the Senate could create a parliamentary investigation committee (CPI) to scrutinize members of high courts in Brazil. The move has received widespread support among President Jair Bolsonaro’s voters—as well as from Senate members of his Social Liberal Party. With one exception, though: Senator Flávio Bolsonaro, the eldest. Currently under investigation for money laundering, Flávio is worried that the CPI would spark the wrath of Supreme Court Justices—and that he could be the target of their retaliation.
Why it matters. While the president’s son is under investigation, the wives of two Supreme Court Justices, including the Chief Justice, have had their financial statements scrutinized by tax authorities. This confluence of interests made Chief Justice Dias Toffoli and President Bolsonaro agree on a “non-aggression pact.”
Justice Toffoli ordered the suspension of any investigation using financial statements flagged by money laundering activities which does not have a court...