Happy Monday! Economy Minister Paulo Guedes gets swept up in the Pandora Papers scandal. Infrastructure Minister to tour the world and drum up interest in investing in Brazil. And Brazilians are studying more, but not making more money as a result.
Top dogs in Brazilian economic policymaking featured in Pandora papers
Economy Minister Paulo Guedes and Central Bank Chairman Roberto Campos Neto came under heightened scrutiny on Sunday after an alliance of international news organizations reported the pair are among several millionaires to stash money abroad in offshore accounts.
- The revelation comes after the International Consortium of Investigative Journalists (ICIJ) published the “Pandora Papers,” a trove of private financial records showing accounts in tax havens held by powerful people (including world leaders, celebrities, and members of royal families).
The Brazilian case. At least until last week, Economy Minister Paulo Guedes held a company based in the British Virgin Islands worth USD 9.55 million. Mr. Campos Neto, meanwhile, also has multiple offshore accounts.
Why it matters. Messrs. Guedes and Campos Neto make decisions that impact the exchange rate and taxation, which in turn affect their own assets — a textbook conflict of interests.
What they are saying. Mr. Guedes declined to...