São Paulo: Brazil’s Supreme Court is facing an unusual internal dispute after one of its justices came under pressure over his reported links to Daniel Vorcaro, the banker at the centre of the Banco Master fraud investigation.
Justice Alexandre de Moraes, who sentenced former President Jair Bolsonaro to 27 years in prison over a coup attempt, came under renewed scrutiny on Wednesday after federal police documents made public by fellow Justice André Mendonça showed that Vorcaro repeatedly sought advice from a person investigators identified as Moraes.
The documents also point to a 130 million-real contract between Vorcaro and the law firm of Moraes’ wife, Viviane Barci de Moraes.
Here is what is known about the controversy.
Who is Daniel Vorcaro?
Daniel Vorcaro is a Brazilian banker and businessman who owned Banco Master.
The bank grew rapidly before running into serious financial trouble and becoming the subject of a federal investigation. Vorcaro was arrested in March over allegations linked to a multibillion-dollar fraud scheme. He denies wrongdoing and is awaiting trial.
Police documents released in recent days have also revealed the breadth of Vorcaro’s contacts with people in politics, business and the judiciary. Reuters reported that his contact book contained the names of senior officials and political figures from across Brazil’s political spectrum.
What is the Banco Master case?
Banco Master became the focus of a major federal investigation into alleged financial fraud involving transactions linked to the bank and its executives.
Brazilian authorities have described the alleged scheme as involving billions of dollars. Vorcaro’s arrest and the subsequent investigation have brought scrutiny not only to the bank but also to his relationships with influential figures.
One of them is Senator Flávio Bolsonaro, the son of former President Jair Bolsonaro and a candidate in this year’s presidential election. Flávio has acknowledged receiving money from Vorcaro in connection with financing a film about his father.
President Luiz Inácio Lula da Silva has called for the Banco Master case to be investigated without political shielding. He has also criticised what he described as the use of “selective leaks” and said those responsible for the investigation must be held accountable.
Why is Alexandre de Moraes involved?
Moraes is not accused of participating in the alleged fraud at Banco Master. The questions surrounding him relate instead to his reported contacts with Vorcaro.
Documents made public by Mendonça contain messages indicating that Vorcaro repeatedly sought advice from someone investigators identified as Moraes. The messages have raised questions about the nature of their relationship and whether Vorcaro received information about his impending arrest.
The police report also refers to a contract between Vorcaro and the law firm of Moraes’ wife. The agreement was worth about 130 million Brazilian reais, or roughly $26 million.
Lawyers for Viviane Barci de Moraes said the justice reviewed the contract to check for a possible conflict of interest. They also said Moraes never ruled on cases involving Vorcaro or Banco Master.
Moraes has not publicly commented on the allegations.
Why are people calling for Moraes to resign?
The disclosures have drawn criticism from politicians, legal commentators and sections of the Brazilian media.
Critics say the reported communications with Vorcaro, together with the contract involving his wife’s law firm, raise questions about a possible conflict of interest and could affect confidence in the court.
Flávio Bolsonaro has called for Moraes to leave the Supreme Court. Other political figures have also called for an investigation.
There is, however, no established finding that Moraes committed a crime in connection with Banco Master. His supporters and legal representatives have stressed that he did not preside over cases involving the bank or Vorcaro.
Why is the Supreme Court itself involved?
The dispute has now moved inside the Supreme Court.
Mendonça, who was appointed to the court by Bolsonaro, made the police material public after it raised questions about Moraes’ contacts with Vorcaro. Moraes, in turn, sought an investigation into Mendonça, accusing him of abuse of authority.
Chief Justice Luiz Edson Fachin is considering the next procedural steps. The court may ultimately have to decide whether there are grounds for a formal investigation into the allegations against Moraes.
Why does this matter for Brazil’s election?
The dispute comes less than a month before Brazil’s October 4 presidential election, adding another point of tension to an already polarised campaign.
Lula has said that everyone involved in the Banco Master case should be investigated “without shielding anyone, no matter who it hurts”. Fachin has also given the attorney general five days to respond to Moraes’ allegations against Mendonça, while the court is expected to consider whether Moraes himself should face an investigation.
The case has particular political significance because of Moraes’ role in proceedings involving Bolsonaro and his supporters. Moraes was appointed to the Supreme Court by former President Michel Temer, rather than by Lula, but Bolsonaro’s political camp has repeatedly accused him of acting against the former president.
The latest disclosures have given Bolsonaro’s allies another avenue to challenge Moraes. At the same time, Flávio Bolsonaro’s own financial connection to Vorcaro has complicated the political attack.
For the Supreme Court, the dispute presents a different problem. Any investigation involving one of its own justices could put further attention on the court’s internal divisions and its role in Brazil’s increasingly contentious political landscape.
With the election approaching, the Banco Master case is therefore no longer only about the collapse of a bank or the conduct of a single judge. It is also testing how Brazil’s institutions respond when allegations reach the highest levels of the judiciary.
(With agency inputs from Reuters and AP via PTI)