Political Appointments in Brazil’s State Companies Rise Sharply Under Lula

Since January 2023, Brazil’s government has created 273 new political jobs in state-owned companies. Official records show these positions now cost at least R$206 ($37) million each year in salaries and benefits.

Most of these jobs go to people with connections to the ruling Workers’ Party (PT), allied parties, or their families. This marks a clear shift toward more political influence in key public companies.

Government technical staff warned about risks to good management. They pointed out that some appointments ignore court rulings and pay salaries above what is normal in the market.

However, these warnings are only suggestions, and companies do not have to follow them. The Grupo Hospitalar Conceição (GHC), a public hospital network, saw the biggest jump in political appointments.

It increased from 16 to 69 positions, a 331% rise. The company said it needed more staff for new projects. However, many of the new hires have strong political backgrounds, including former government advisors and party activists.

Some of these roles pay R$22,000 per month. Dataprev, which manages government data systems, also increased its political jobs from 33 to 93, a rise of 181%.

The company said it needed more staff for new digital projects and lost many workers during the pandemic. Yet, some new hires are known for their political connections rather than technical skills.

The National Development Bank (BNDES) added more political appointees as well, with some earning above the legal salary cap of R$46,000 per month. Several new hires have worked in politics or government before.

The bank said it needs these people for new business areas and to regain its role in Brazil’s development. Telebras, a state telecom company, created new political jobs even after courts told it to reduce them.

Some of these roles pay up to R$30,000 per month. Relatives of government officials now fill some of these jobs. The company plans to increase political appointments from 56 to 88, even though technical staff called this risky.

The government argues that political appointees make up only a small share of the total workforce—about one in every 314 employees. Officials say these jobs bring in outside expertise and help with special projects.

Still, the rapid increase in political roles has drawn criticism from experts and watchdogs, who warn of weaker management and higher costs. This trend matters because state companies play a big role in Brazil’s economy and provide essential services.

When political ties matter more than skills, these companies may become less efficient. That can mean higher costs for taxpayers and weaker services for everyone. The story of these appointments shows how political influence can shape public companies and affect the daily lives of millions.

All figures and claims in this article come from official government data and public company statements. No information has been fabricated or exaggerated.

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