Group items tagged

Leaked recordings of heavyweight politicians discussing Brazil's sprawling kickback scandal caused more headaches for acting President Michel Temer, with a new tape forcing his anti-corruption minister to quit.

Transparency Minister Fabiano Silveira was the second member of the interim administration to leave in only 16 days on Monday because of recorded conversations about the investigation into corruption at the state oil company Petrobras and the impeachment of President Dilma Rousseff. The new turmoil started when TV Globo broadcast a recording of Silveira giving legal advice to the Senate president, who is under investigation for links to corruption at Petrobras. The recording also shows Silveira criticising the investigation itself, which has implicated some of Brazil's most prominent politicians and businessmen. In its report late on Sunday, TV Globo said Silveira had repeatedly contacted investigators in the Petrobras case to seek information on the accusations against Senate chief Renan Calheiros, but he did not succeed in getting any details. The conversation was recorded at Calheiros' residence some time before the Senate voted to suspend Rousseff pending an impeachment trial and put the government in Temer's hands.

Brazilian media had said Temer met with Cabinet ministers in the afternoon and decided to keep Silveira on the job for now, with Silveira saying he was not involved in any wrongdoing. But later Silveira sent a letter of resignation, saying it was best that he leave the job "despite the fact that nothing is hitting my behaviour". Temer did not announce any pick to succeed Silveira, who came under intense criticism from Brazilians and international groups following the TV Globo report. According to the union for workers at the Transparency Ministry, about 200 officials of the anti-corruption body offered their resignations to protest against Temer's initial decision to keep Silveira in the job.

Throughout the last year, the U.S. government has repeatedly insisted that it does not engage in economic and industrial espionage, in an effort to distinguish its own spying from China’s infiltrations of Google, Nortel, and other corporate targets. So critical is this denial to the U.S. government that last August, an NSA spokesperson emailed The Washington Post to say (emphasis in original): “The department does ***not*** engage in economic espionage in any domain, including cyber.” After that categorical statement to the Post, the NSA was caught spying on plainly financial targets such as the Brazilian oil giant Petrobras; economic summits; international credit card and banking systems; the EU antitrust commissioner investigating Google, Microsoft, and Intel; and the International Monetary Fund and World Bank. In response, the U.S. modified its denial to acknowledge that it does engage in economic spying, but unlike China, the spying is never done to benefit American corporations.

In a graphic describing an “illustrative example,” the report heralds “technology acquisition by all means.” Some of the planning relates to foreign superiority in surveillance technology, but other parts are explicitly concerned with using cyber-espionage to bolster the competitive advantage of U.S. corporations. The report thus envisions a scenario in which companies from India and Russia work together to develop technological innovation, and the U.S. intelligence community then “conducts cyber operations” against “research facilities” in those countries, acquires their proprietary data, and then “assesses whether and how its findings would be useful to U.S. industry” (click on image to enlarge):

One of the principal threats raised in the report is a scenario “in which the United States’ technological and innovative edge slips”— in particular, “that the technological capacity of foreign multinational corporations could outstrip that of U.S. corporations.” Such a development, the report says “could put the United States at a growing—and potentially permanent—disadvantage in crucial areas such as energy, nanotechnology, medicine, and information technology.” How could U.S. intelligence agencies solve that problem? The report recommends “a multi-pronged, systematic effort to gather open source and proprietary information through overt means, clandestine penetration (through physical and cyber means), and counterintelligence” (emphasis added). In particular, the DNI’s report envisions “cyber operations” to penetrate “covert centers of innovation” such as R&D facilities.

Brazil's Supreme Court has given prosecutors the go-ahead to investigate dozens of top politicians, including a former president and leaders of Congress, for alleged links to a kickback scheme at the state-run energy company. The inquiry will now focus on a former president, the leaders of the lower house and Senate and 51 other figures as federal prosecutors dig into political ties to the scheme that they say saw at least $800m in bribes and other funds paid by big construction and engineering firms in return for inflated contracts with the state energy company Petrobras.

A key figure in Brazil’s interim government has resigned after explosive new transcripts revealed how he plotted to oust President Dilma Rousseff in order to end a corruption investigation that was targeting him. The transcripts, published by Brazil’s largest newspaper, Folha de São Paulo, document a conversation in March, just weeks before Brazil’s lower house voted in favor of impeaching President Rousseff. Romero Jucá, who was then a senator but became a planning minister after Rousseff’s ouster, was speaking with a former oil executive, Sérgio Machado. Both men had been targets of the so-called Car Wash investigation over money laundering and corruption at the state-controlled oil firm Petrobras. In the conversation, the men agree that ousting President Rousseff would be the only way to end the corruption probe. In the transcript, Jucá said, "We have to change the government so the bleeding is stopped." Machado then reportedly said, "The easiest solution is to put Michel in"—a reference to Vice President Michel Temer, who took power once Rousseff was suspended. We speak to Maria Luisa Mendonça, director of Brazil’s Network for Social Justice and Human Rights.

Every political junkie on the planet has to be glued to the ongoing Brazilian House of Cards, consistently offering an unparalleled feast of cheap thrills.The latest cliffhanger was the leak of a conversation between one of the key operators involved in the oil giant Petrobras corruption scandal and a senator and short-lived Minister of Planning in the usurper interim government currently replacing President Dilma Rousseff while she is undergoing an impeachment trial by the Senate.  Call the leak a short autopsy of what from the beginning should have been defined as golpeachment; a mix of coup (“golpe”, in Portuguese) and impeachment, which took place in a one/two sequential vote in the Brazilian Congress and Senate, as a notorious congregation of crooks investigated for myriad offenses and crimes seized power in Brasilia in a full-fledged Buffon’s Opera. I call their scam Provisional Banana Scoundrel Republic (PBSR).  

The leak/autopsy duly unveiled how the PBSR cancer progressed.  One of the key plotters outlines the coup; stresses how it should protect Brazilian plutocracy/kleptocracy from unintended consequences of the ongoing, two-year-old Car Wash corruption investigation; and how the Left – from President Rousseff to Lula and the Workers’ Party – should be criminalized for good. 

The rest would be history, including the demolition of recently acquired social and workers’ rights via the imposition of a neoliberal restoration; total reversion in foreign policy, with geopolitical and geoeconomic relations back to a colonized mindset; and the reestablishment of a conservative, neoliberal, rentier hegemonic class lording over a socially-oriented, democratic society. That fits in with the current Brazilian Congress and Senate dominated by “BBB” interests. “BBB” stands for Beef (the powerful agribusiness lobby); Bullet (the weapons and private security complex); and Bible (evangelical fanatics), all supported by corporate media. Many of these unsavory characters are connected and/or represent the toxic Brazilian rural aristocracy – which are in fact heirs to nobility titles handed over to slave owners. It was going all so swell after only a few days – even with the former head of the lower house, notorious crook Eduardo Cunha, temporarily sidelined; Cunha – the ringleader of a campaign financing scam inside Congress – de facto had become the Prime Minister of the puppet former Vice-President and current, interim President Michel Temer. 

The President of Brazil, Dilma Rousseff announces publicly the creation of a world internet system INDEPENDENT from US and Britain ( the “US-centric internet”). Not many understand that, while the immediate trigger for the decision (coupled with the cancellation of a summit with the US president) was the revelations on NSA spying, the reason why Rousseff can take such a historic step is that the alternative infrastructure: The BRICS cable from Vladivostock, Russia  to Shantou, China to Chennai, India  to Cape Town, South Africa  to Fortaleza, Brazil,  is being built and it’s, actually, in its final phase of implementation. No amount of provocation and attempted “Springs” destabilizations and Color Revolution in the Middle East, Russia or Brazil can stop this process.  The huge submerged part of the BRICS plan is not yet known by the broader public.

Nonetheless it is very real and extremely effective. So real that international investors are now jumping with both feet on this unprecedented real economy opportunity. The change… has already happened. Brazil plans to divorce itself from the U.S.-centric Internet over Washington’s widespread online spying, a move that many experts fear will be a potentially dangerous first step toward politically fracturing a global network built with minimal interference by governments. President Dilma Rousseff has ordered a series of measures aimed at greater Brazilian online independence and security following revelations that the U.S. National Security Agency intercepted her communications, hacked into the state-owned Petrobras oil company’s network and spied on Brazilians who entrusted their personal data to U.S. tech companies such as Facebook and Google.

BRICS Cable… a 34 000 km, 2 fibre pair, 12.8 Tbit/s capacity, fibre optic cable system For any global investor, there is no crisis – there is plenty of growth. It’s just not in the old world BRICS is ~45% of the world’s population and ~25% of the world’s GDP BRICS together create an economy the size of Italy every year… that’s the 8th largest economy in the world The BRICS presents profound opportunities in global geopolitics and commerce Links Russia, China, India, South Africa, Brazil – the BRICS economies – and the United States. Interconnect with regional and other continental cable systems in Asia, Africa and South America for improved global coverage Immediate access to 21 African countries and give those African countries access to the BRICS economies. Projected ready for service date is mid to second half of 2015.

Brazil plans to divorce itself from the U.S.-centric Internet over Washington’s widespread online spying, a move that many experts fear will be a potentially dangerous first step toward fracturing a global network built with minimal interference by governments. President Dilma Rousseff ordered a series of measures aimed at greater Brazilian online independence and security following revelations that the U.S. National Security Agency intercepted her communications, hacked into the state-owned Petrobras oil company’s network and spied on Brazilians who entrusted their personal data to U.S. tech companies such as Facebook and Google. The leader is so angered by the espionage that on Tuesday she postponed next month’s scheduled trip to Washington, where she was to be honored with a state dinner. Internet security and policy experts say the Brazilian government’s reaction to information leaked by former NSA contractor Edward Snowden is understandable, but warn it could set the Internet on a course of Balkanization.

“The global backlash is only beginning and will get far more severe in coming months,” said Sascha Meinrath, director of the Open Technology Institute at the Washington-based New America Foundation think tank. “This notion of national privacy sovereignty is going to be an increasingly salient issue around the globe.” While Brazil isn’t proposing to bar its citizens from U.S.-based Web services, it wants their data to be stored locally as the nation assumes greater control over Brazilians’ Internet use to protect them from NSA snooping. The danger of mandating that kind of geographic isolation, Meinrath said, is that it could render inoperable popular software applications and services and endanger the Internet’s open, interconnected structure.

The effort by Latin America’s biggest economy to digitally isolate itself from U.S. spying not only could be costly and difficult, it could encourage repressive governments to seek greater technical control over the Internet to crush free expression at home, experts say. In December, countries advocating greater “cyber-sovereignty” pushed for such control at an International Telecommunications Union meeting in Dubai, with Western democracies led by the United States and the European Union in opposition.

is there any doubt at all that the US government repeatedly tried to mislead the world when insisting that this system of suspicionless surveillance was motivated by an attempt to protect Americans from The Terrorists™? Our reporting has revealed spying on conferences designed to negotiate economic agreements, the Organization of American States, oil companies, ministries that oversee mines and energy resources, the democratically elected leaders of allied states, and entire populations in those states.Can even President Obama and his most devoted loyalists continue to maintain, with a straight face, that this is all about Terrorism? That is what this superb new Foreign Affairs essay by Henry Farrell and Martha Finnemore means when it argues that the Manning and Snowden leaks are putting an end to the ability of the US to use hypocrisy as a key weapon in its soft power.Speaking of an inability to maintain claims with a straight face, how are American and British officials, in light of their conduct in all of this, going to maintain the pretense that they are defenders of press freedoms and are in a position to lecture and condemn others for violations? In what might be the most explicit hostility to such freedoms yet – as well as the most unmistakable evidence of rampant panic – the NSA's director, General Keith Alexander, actually demanded Thursday that the reporting being done by newspapers around the world on this secret surveillance system be halted (Techdirt has the full video here):

The head of the embattled National Security Agency, Gen Keith Alexander, is accusing journalists of "selling" his agency's documents and is calling for an end to the steady stream of public disclosures of secrets snatched by former contractor Edward Snowden."I think it's wrong that that newspaper reporters have all these documents, the 50,000 – whatever they have and are selling them and giving them out as if these – you know it just doesn't make sense," Alexander said in an interview with the Defense Department's "Armed With Science" blog."We ought to come up with a way of stopping it. I don't know how to do that. That's more of the courts and the policy-makers but, from my perspective, it's wrong to allow this to go on," the NSA director declared. [My italics]There are 25,000 employees of the NSA (and many tens of thousands more who work for private contracts assigned to the agency). Maybe one of them can tell The General about this thing called "the first amendment".I'd love to know what ways, specifically, General Alexander has in mind for empowering the US government to "come up with a way of stopping" the journalism on this story. Whatever ways those might be, they are deeply hostile to the US constitution – obviously. What kind of person wants the government to forcibly shut down reporting by the press?Whatever kind of person that is, he is not someone to be trusted in instituting and developing a massive bulk-spying system that operates in the dark. For that matter, nobody is.

Brazilians have become inured to seeing politicians and businessmen marched off to prison for corruption. But the mug shot of banker André Esteves—unshaven and frowning—that flashed across TV screens in early December was a shock. Part of a cadre of mavericks who got astonishingly rich from Brazil’s transformation into one of the world’s top 10 economies in the 2000s, Esteves helped turn Grupo BTG Pactual into Latin America’s biggest standalone investment bank. Supremely confident, Esteves—who was a billionaire by his mid-30s—liked to quip that the initials in his company’s name stood for “Better than Goldman.”Around dawn on Nov. 25, Esteves’s fortunes soured in an instant. Police showed up at his apartment, which faces Rio de Janeiro’s legendary Ipanema beach, and hauled him away on allegations of obstructing a federal investigation into a massive pay-to-play scheme centered on Brazil’s state-run oil giant, Petrobras. Now Esteves, 47, resides in a cell block with concrete beds and communal toilets at Bangu, a high-security prison in Rio better known for housing drug traffickers and murderers.

Having its founder, chief executive officer, and chairman behind bars has pushed BTG Pactual to the brink of insolvency as clients pull their money out. Within days of his arrest, Esteves had relinquished his controlling stake in the firm, and his partners had begun a wholesale selloff of assets. To avert disaster, Brazil’s central bank helped engineer a $1.6 billion rescue line from the country’s privately funded deposit guarantee fund. Still, the bank’s shares have lost half their value since Esteves’s arrest. On Dec. 7, prosecutors formally accused the banker of obstruction of justice. Antônio Carlos de Almeida Castro, Esteves’s lawyer, says his client has done nothing wrong.The metastatic graft scandal that sent Esteves to jail threatens more than the survival of BTG. So many legislators are implicated, Congress has been unable to pass legislation to contain an exploding budget deficit. President Dilma Rousseff has grown so unpopular that lawmakers are maneuvering to impeach her for allegedly cooking the government’s books. Meanwhile, the economy is sliding into what Goldman Sachs calls a full-blown depression.

BTG’s collapse won’t cause Brazil’s capital markets to seize up as Lehman Brothers’ failure did in the U.S. in 2008. Yet having one of the country’s most prominent financiers behind bars is a body blow to the confidence of investors at a time when Brazil needs their cash. “It very much gives you the impression that the corruption scheme is so widespread that it induces a kind of counterparty risk,” says Monica de Bolle, a former International Monetary Fund economist. “You enter into transactions with people in Brazil without knowing whether or not they might be implicated in something.” The result: “Nothing gets done. There’s no business,” she says.