Minister Has An Account Of US$9.55 Million In A Tax Haven Which Earned Around R$300,000 A Day With The Economic Crisis

Economy Minister Paulo Guedes had a profit of R 124 million in the last four days with the devaluation of the real against the dollar in this period Since Monday 18 the equity of US 955 million invested.

The minister in the offshore that he maintains in the tax haven of the British Virgin Islands has risen on average 300 thousand per day due to movements in the governments own economic area led by him.

Earlier this week when Paulo Guedes met with President Jair Bolsonaro to discuss Brazil Aid the new Bolsa Family the dollar was quoted at 551 according to the Central Banks conversion.

On that 18th the ministers equity in the offshore was equivalent to R 52620 million this Thursday 21 with the dollar ending the day at R564 the amount in reais invested in offshore jumped to R53862 million an increase of 1242 million since the beginning of the week.

This Wednesday 20 Guedes even stated that he was studying a license to break the federal government spending ceiling which was poorly received by the financial market causing the dollar to rise and the Stock Exchange to fall The statement took place during an event promoted by the Brazilian Association of Real Estate Developers Abrainc.

The constitutional amendment that created the spending ceiling approved in 2016 is considered the fiscal anchor of the country’s public accounts Spending limit changes signal a risky scenario to the market The economic indicator called Brazil risk.

This Thursday to the highest level in more than six months influenced by the turmoil in the Brazilian markets due to the fear of uncontrolled public accounts

Paulo Guedes earned R14000 each day as a minister with offshore the devaluation of the real during Guedes command at the Ministry of Economy made the investment made by the minister in August 2015 equivalent to BRL 35 million to rise by more than BRL 18 million until the last 3rd when the existence of his account in the tax haven.

According to specialists it is not illegal to have offshores but they must be declared to the Revenue and in the case of public servants there are a series of rules to avoid conflicts of interest.

Guedes goes on to say that the operations are legal and that he has withdrawn from all activities in the private market within the terms required by the Public Ethics Commission.

On Thursday 21 four of Guedes main assistants left the portfolio The Special Secretary of the Treasury and Budget Bruno Funchal and the Secretary of the National Treasury Jeferson Bittencourt asked for their resignation.

The deputy special secretary of the Treasury and Budget Gildenora Dantas and the deputy secretary of the National Treasury Rafael Araujo also left the ministry They disagree with the dribble that the government intends to make in the spending ceiling to pay for AuxĂ­lio Brasil.

The situation aggravated the political crisis in the government The possibility of Guedes dismissal has strengthened since the offshore revelation.

A survey released on October 8 shows that 64 of the Brazilian population believed that Bolsonaro should fire Guedes For an even larger portion of those interviewed 68 the minister was unable to remain in office The survey commissioned by Record TV was carried out by Instituto Realtime Bigdata.

On October 15 the PoderData survey also revealed the rejection of Guedes work According to the survey a third of Brazilians misjudged the ministers performance His management was considered bad or very bad by 35 of Brazilians who know him The number is 9 percentage points higher than the ministers assessment in the previous survey.

The crisis comes at a time when the country is facing high prices According to the Extended Consumer Price Index IPCA inflation from January to September 2021 is already 690 almost double the registered throughout 2019 the first of Paulo Guedes as Minister of Economy which was 431 The index accumulated in the last 12 months is already 1025.

The number is the highest since February 2016 1036 The data are from the Brazilian Institute of Geography and Statistics IBGE.

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