Good morning! We’re analyzing today the latest scandal in Jair Bolsonaro’s cabinet. The imminent departure from Brazil of China’s biggest private conglomerate. And how inflation hits different social classes differently. (This newsletter is for premium subscribers only. Become one now!)
Latest scandal could topple Bolsonaro’s press secretary
President Jair Bolsonaro is reportedly mulling over whether to fire press secretary Fabio Wajngarten after newspaper Folha de S.Paulo revealed he takes money from the TV stations and ad agencies that have contracts with the federal government.
The case, explained. Mr. Wajngarten owns 95 percent of shares in a company that offers media consulting services, with his mother owning the remaining 5 percent. At least five of his clients are outlets which depend on his office as press secretary to get ad money from governmental agencies—in 2019, the government spent BRL 197 million in ads.
Mr. Wajngarten denied any wrongdoing and accused the press of publishing falsehoods about him.
Why it matters. Since 2013, Brazil has a law explicitly prohibiting conflicts of interest by government officials. Moreover, the Bolsonaro administration has been accused of using ad money to try and squeeze media outlets into supporting the government.
TV stations such as Record and...