Corruption Scandal in Brazil Also Brings Down Federal Savings Bank’s Chief

The downfall of Brazil’s Minister of Finance, Antonio Palocci, was sealed when it was discovered that information about a bank account had been made public by someone in the government in violation of Brazil’s bank secrecy laws.

The bank account (actually a passbook savings account) that was violated belonged to Francenildo Santos Costa, a caretaker-gardener who contradicted testimony given by minister Palocci.

Costa testified that he had seen Palocci several times in a house believed to be a center of prostitution and distribution of illegal money, while the fallen minister denied having ever been to the house.

As a result of the violation of bank secrecy laws, Jorge Mattoso, the president of the state-run Federal Mortgage and Savings Bank, where Costa had his account, has been indicted by the Federal Police. He is charged with what is called violation of bank secrecy laws.

Mattoso denies breaking the law and after testifying to the Federal Police he resigned as president of the Caixa.

ABr

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