By Richard Mann, Contributing Reporter
RIO DE JANEIRO, BRAZIL – Last week, during coffee with journalists, Brazilian President Jair Bolsonaro reaffirmed that he relied on the proceeds from fines paid by Petrobras to offset the announced controversial cut in education.
In an earlier statement on Thursday, May 16th, he said that he expects to allocate R$2.5 billion (US$682 million) to the Ministry of Education, Science, and Technology.
But now there is a new development, as Brazil’s Supreme Court (STF) may decide to split this amount, according to court sources. The rapporteur of the case is Justice Alexandre de Moraes.
Petrobras signed an agreement with U.S. authorities to return US$853 million to investors as compensation for fraud in the state-owned company.
However, after the agreement in the United States, the Lava Jato Task Force of the Federal Public Prosecutor’s Office (MPF) signed a different commitment with Petrobras, defining how to use the money.
This commitment sought to invest half of the amount (about R$1.25 billion) in an endowment fund managed by a private foundation created by the Task Force, with the proceeds to be applied in projects to combat corruption and promote citizenship and integrity.
Although the Task Force retreated from the private fund after receiving heavy criticism, the agreement between the state-owned company and the MPF was entirely suspended by decision of STF Justice Moraes.
Now, the Supreme Court will decide on how the money will be applied.
Economy Minister Paulo Guedes has already advocated exclusive use for education. The Minister of Justice, Sérgio Moro, suggested that the sums be allocated to the Penitentiary Fund (Funpen).
The federal Solicitor General’s Office (AGU) proposed that the Supreme Court improve the prison system.
Federal Prosecutor General, Raquel Dodge, highlighted the need to invest in education but has not yet formally expressed her opinion on the destination of the amounts.
Currently, Justice Moraes’ staff is examining the options and awaiting budget feasibility studies.
If there is an agreement within the federal government on the use of the money, Justice Moraes may decide on his own on the allocation of the billionaire fund’s resources.
If each branch of government asks for a different allocation, it is possible that a final decision will fall to the full STF.