a relatively unsullied reputation. In fact, Silva’s Te Worker’s Party had investigated allegations of corruption against various administrations over the years. However, in February 2004, Magazine Época published a report into Waldomiro Diniz, then the president’s liaison to Congress and deputy to Lula’s Chief of Staff, Jose Dirceu.
Diniz was seen on a two-year-old videotape apparently soliciting hundreds of thousands of dollars in campaign contributions from the boss of “the animal game” Carlos Augusto Ramos in return for political favours. Época described Ramos as a kingpin of ‘the animal game’ in Rio de Janeiro. In addition, Ramos was also part or full-time owner of numerous bingo halls, where it was alleged he laundered money generated by the jogo do bicho. Te tape’s authenticity was verified by experts and it was aired by all the major Brazilian television stations.
Te story made headlines for months and was incredibly damaging to the government. It also took its toll on the economy as well, since investors reacted to the possible consequences of a high- ranking aide handing out political favours for cash. Te story also spun off into different directions.
Reports emerged that the director of the Rio Grande do Sul state lottery authority, had been pressured by a senator from the state’s Worker’s Party to solicit hundreds of thousands of dollars from bingo operators for her re- election bid. Meanwhile, a Congressional special commission was proposed by non-government parties so that claims over the animal game story in Rio de Janeiro could be investigated.
Lula reacted by banning bingo halls in order to head off a congressional probe. It was estimated that between 120,000 and 320,000 gaming employees were put out of work by the February 2004 decree. “For eight years, the PT investigated everything under the sun,” said Congresswoman Zulaie Cobra, a Social Democrat. "Now that they are in power, they want to sweep these allegations under the rug.”
MONEY LAUNDERING FEARS
Fears persist today that any large scale casino project could be used as a way to launder money and that the size of the industry could overwhelm supervisory bodies.
In April last year, Te National Council of Attorneys General of the Public Ministry of the States and the Union (CNPG), released a short paper arguing that the bill in its current state would lead to an industry that would exist in a ‘supervisory limbo.’ Tis would have very serious consequences in the fight against corruption and money laundering in the long-term as the industry would be a prime target for the infiltration of foreign organised groups into Brazil.
Te paper was prepared by the National Group to Combat Criminal Organisations (GNCOC), a group which targets criminal factions throughout various regional public ministries, with support from the federal police.
According to intelligence data provided to the Public Ministry, the alliance between gambling operators and criminal factions and militias is already a reality in the State of Rio de Janeiro, so that the legalisation of this activity would only serve to strengthen these criminal organisations. “Te CNPG takes a vehement position against the legalisation of gambling in our country. It seems evident that its implementation will bring more costs than benefits,” the paper concluded.
SO WHAT WILL HAPPEN NOW THAT LULA IS IN CHARGE?
A lot has changed since Lula left power, or at least it has in terms of the endless discussions and buck passing. Bill 442/1991(PL 442/91), drafted in the Chamber of Deputies, replaces and is in part an amalgamation of as many as 20 other gambling related projects, all of which have been discussed since 1991. PL 442/1991 was approved by the Chamber of Deputies in February, and is pending approval in the Senate, where it has languished in part due to the electoral race.
In addition, President Jair Bolsonaro had until December 12 to finalise the process of regulating sports betting (Law No. 13,756), which was passed by his predecessor. Obviously, that deadline has passed. Taken along with Bill 442/1991, this means that the Bolsonaro government has managed to successfully dodge the issue for four years straight.
Te question now is whether Lula will do the same? Or will he be forced to allow gambling reform due to the dire need to pay for all
WIRE / PULSE / INSIGHT / REPORTS P97
the things he’s promised during his election campaign?
Broadly speaking, Lula’s agenda is one of liberal reform and the expansion social services for the poor. Again, very broadly speaking, he was previously able to do this during his first four years in office as the economy benefited from trends globally, including rising commodity prices. Tis boom saw the price of commodities like oil, and metals, steadily increase thanks to growing demand from emerging market economies like China and India. Tis helped lower inequality in Brazil. However, this time around Lula will not benefit from the same surge in the global commodities market.
Around 100 million Brazilians now live in poverty. Much of the focus will be on reindustrialisation and public works projects to restore the living conditions of the vast majority of the Brazilian population, while new labour legislation will extend social protection to all forms of occupations. Lula will need to navigate his way through a hostile congress to get this done.
According to
intelligence data provided to the Public Ministry, the alliance between gambling operators and criminal factions and militias is already a reality in the State of Rio de Janeiro, so that the legalisation of this activity would only serve to
strengthen criminal organisations. “The CNPG takes a vehement position against the legalisation of gambling in our
country. It seems evident that its implementation will bring more costs than benefits.”
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