Brazil’s 27 sitting governors, among them newcomers and second-termers, took office on January 1, 2019, to what they knew would be a challenging four-year stint in office. The country’s financial conditions had worsened, while spending on wages and pensions increasingly hobbled state finances from north to south. However, no one was prepared for just how tough 2020 has been. The Covid-19 pandemic hit state administrations in different forms, putting job security on the line for many governors. Tax revenues fell sharply. The state of São Paulo, Brazil’s wealthiest, reported a 10-percent drop in tax collection from its ICMS goods and services tax, the main source of revenue for states.
But the financial hit only tells a part of the story.
From the beginning of the coronavirus spread in Brazil, the overly-politicized debate on quarantine rules pitted governors against President Jair Bolsonaro — who staunchly stood against social isolation and tried to place the blame for the current crisis solely on state governments.
Moreover, the pandemic forced administrations to make emergency purchases of medical supplies and hastily build field hospitals in order to cope with the eye-watering increase in demand for hospital beds. In several cases, contracts did not respect Brazil’s public procurement laws — putting governors in the crosshairs of the Federal Police. The most recent governor to find himself in that situation was Wellington Dias, from the northeastern state of Piauí, who was targeted by an anti-corruption investigation into allegedly embezzled education funds. But Mr. Dias is by no means alone.
A survey carried out by The Brazilian Report found that law enforcement has targeted 14 state governments since March, when the pandemic first reached Brazil. Some inquiries concern the governors themselves, while others concern members of their administration.
Some are even at...
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