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Crisis with Petrobras exposes Lira and Pacheco’s action for reelection in Congress

Hayden Walsh by Hayden Walsh
June 21, 2022
in News
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Crisis with Petrobras exposes Lira and Pacheco's action for reelection in Congress
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“There in our churches will only talk about Jesus, at the time of election, and about you.” This is how Bishop Samuel Ferreira, leader of the Madureira Assembly of God, showed who the “sir” was in that pulpit: the president of the Chamber, deputy Arthur Lira (Progressistas-AL). The order on how to request a vote for Lira was given to Pastor Jaques Balbino during the national convention in Madureira, in Goiânia, on the 26th.

“This is your candidate. Say hello to the man, boy!”, summoned Ferreira to the pastor who commands the denomination’s churches in Alagoas. Balbino hugged Lira. The minister of the Civil House, Ciro Nogueira (Progressistas), was also at the service. Everyone laughed.

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While the country turns to the succession of the President of the Republic, Jair Bolsonaro (PL), the increase in the power of Congress in the making of laws and in the assembly of the Union Budget anticipated the dispute for the commands of the Chamber and Senate, scheduled for February. 2023. Both Lira and the president of the Senate, Rodrigo Pacheco (PSD-MG), are campaigning to remain at the head of their respective legislative houses for two more years.

In recent days, the crisis caused by the increase in fuel prices has exposed the duo’s moves to reappoint the seats. It is Lira, however, who acts in the power vacuum of the Palácio do Planalto, exercising functions that go beyond that of mayor.

An exponent of Centrão, the deputy even asked for the head of the then president of Petrobras, José Mauro Coelho, who on Monday resigned from his position, and caused controversy in the clash with the state-owned company by threatening to even investigate its leaders through a Commission Parliamentary Survey (CPI). Alongside Pacheco, he also discussed with party leaders, on Monday night, a proposal to tax Petrobras’ profits.

Lira’s influence in various departments explains the support of the evangelical church. In Alagoas, the Assembly of God Madureira stopped launching a candidate for deputy and joined the campaign for another term for the mayor.

“His history (sic) allowed him to be where he is. His re-election will be smooth as a deputy and it is (sic) two more years in the presidency”, said Bishop Ferreira.

In that service on the 26th, the head of the Assembly of God Madureira revealed one of the reasons that led him to bless Lira: the approval of a Proposed Amendment to the Constitution (PEC) that exempts the payment of the Urban Property and Territorial Tax (IPTU) in properties rented by churches.

“The church’s commitment to politics is to keep our agendas lit, defend the family, religious freedom. The church supports those who support the church”, said deputy Cezinha de Madureira (PSD-SP), deputy leader of the government, when commenting on the support for the president of the Chamber.

Verba

The top of Congress also controls this year R$ 16.5 billion from the secret budget, a resource distribution scheme, through amendments by the rapporteur, as revealed by the newspaper O Estado de S. Paulo.

Lira directly commands the destination of R$ 11.5 billion – the rest goes to the Senate -, choosing the benches benefited.

Behind the scenes, the distribution of positions and funds in exchange for votes is already part of the negotiations. According to government allies, parliamentarians closest to Centrão will have up to R$10 million to send to their strongholds, before the October election, and another R$10 million will remain pending. The strategy would be to guarantee the release of the other part of the money in December to reelected deputies, paying the bill only shortly before the vote in Congress, in early 2023.

Under this agreement, only the group that wins a new mandate in October and secures a vote for Lira in February of next year takes the complete package. “I am not concerned with gossip and speculation, but rather with collaborating so that the Brazilian people suffer as little as possible from the effects of the post-pandemic and the global inflationary crisis caused by the war”, said Lira when asked by the newspaper O State of S. Paulo on the settlement.

To give Lira more power, Bolsonaro promised to recreate the Ministry of Industry and Commerce, now under the umbrella of the Economy, a portfolio headed by Paulo Guedes. The idea was to put the new ministry “in the hands” of the mayor. The promise was made by Bolsonaro almost a month ago, at an event at the Federation of Industries of Minas Gerais (Fiemg). The retreat came after a warning from Lira himself that the portfolio could not get off the ground now, but only in 2023, if Bolsonaro is reelected.

Bolsonaro arrived at the presidency without political articulation and handed over the keys to the Planalto to Centrão, a bloc of parties on which he relies in his attempt to get reelected. “Today, the President of the Republic is almost a decorative figure,” said former mayor Aldo Rebelo (PDT). “If a stronger president emerges from the polls, that could change. If not, the trend is to continue the same thing: the Executive is tutored and subjected to the worst whims of the Legislature.”

Scenario

Lira’s plans may be threatened, however, with an eventual defeat by Bolsonaro. In this case, the tendency is to have a composition of the Chamber that is unfavorable to the deputy’s intentions. “Lira’s re-election depends on Bolsonaro. After the October elections, business will boil here,” said deputy Colonel Tadeu (PL-SP).

A favorite in polls, Luiz Inácio Lula da Silva (PT) promises to regain control of the Budget and bills, if elected. In March, PT classified the Congress as “the worst in history”, causing a reaction from the top of the Legislative.

“Lula’s election, like it or not, would change the mouth. It wouldn’t work the same way,” stated Senator Jaques Wagner (PT-BA), about the effect of the distribution of secret funds on the outcome of the disputes. “The delivery of amendments became a bargaining chip, anticipated the election of parliamentarians and, in a way, the majority election process.”

Pacheco gave up his candidacy for the Plateau to focus on the election that seemed to him the most promising: that of president of the Senate and, consequently, of Congress. With a more independent articulation compared to Lira, Pacheco tried to guide the tax reform to use the proposal as a campaign banner, but was defeated.

The Senate president also maintains a bridge with the opposition, but denies that he is asking for support to be reappointed. “This is not the time to discuss this. Our focus is on the current legislature and on the work we have to do to help the country.”

The PSD should support Lula in an eventual 2nd round, in exchange for the PT’s adhesion to Pacheco’s new mandate in command of the Senate. The information is from the newspaper O Estado de S. Paulo.

Tags: actionCongresscrisisexposesLiraPachecosPetrobrasreelection
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Hayden Walsh

Hayden Walsh

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