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Brazil's Corrupt Congress Will Never Stop Petrobras Investigation

Brazilian President Michel (L) talks to Senate's President Renan Calheiros. In May, leaked phone conversations showed that Renan was supportive of an amnesty bill that would protect politicians from criminal courts in the Petrobras pay-for-play investigation. He rammed through a vote on Wednesday and it failed to garner support in the Senate. (Photo by EVARISTO SA/AFP/Getty Images)

Contrary to all the hand-wringing and hair-pulling that the Brazilian congress will succeed at railroading the Petrobras investigation, the truth of the matter is that they can throw everything plus the kitchen sink against the judicial system...and they will fail.

Brazil's president Michel Temer already said he would veto any bill that protects congress from undocumented donations and kickbacks. Such maneuvers are business-as-usual for the bulk of Brazilian politicians and was surely par for the course in the Petrobras contract rigging schemes that ultimately led to the ouster of the Workers' Party from power. Alas, Petrobras' white collar criminals will lose their political power or get a new address in a federal penitentiary. That's a fact.

"Congress won't be able to stop the Petrobras investigations," says Lucas de Aragão, a partner with Arko Advice, a political risk firm in Brasilia. Lava Jato, Aragão says of the original code name given by the Federal Police to the Petrobras operation, is "like Freddy Krueger from Friday the Thirteenth. As much as you try to stop him, he just keeps coming at you."

Any political measures designed to weaken the Petrobras investigation and protect politicians involved in it will be a pockmark on the three-month old Temer government. Not only would it turn off foreign investors who like transparency (and like to know that their money isn't going into politicians' penthouses and art collections) but it would absolutely turn off main street Brazilians who are almost unanimously supportive of the Petrobras trials.

If the 10 Measures Act became a law with amendments providing cover for corruption, it would lead to political uncertainty and possible widespread protests.

Congress sent the mammoth anti-corruption bill to the Senate late last night. And on Wednesday night, Senate leader Renan Calheiros tried to ram through a vote on the measure and it got shot down. The public prosecutors warned that if it had passed, they would cause a stir, some saying they would even quit the Petrobras investigative task force. Calheiros, meanwhile, is busy making enemies with judges and now he is in the crosshairs and is likely to lose his mandate in 2017.

(Source:http://www.forbes.com/sites/kenrapoza/2016/11/30/brazil-corrupt-congress-petrobras/#191867633fde)