IFI: Pacheco appoints an ally to command the institution – 06/13/2023 – Market

The Senate is analyzing this Wednesday (14) the nomination by the President of the House, Rodrigo Pacheco (PSD-MG), of former federal deputy Marcus Pestana (MG) for the executive board of the IFI (Independent Fiscal Institution) for the next four years.

The name of the former Minas Gerais parliamentarian has raised criticism behind the scenes, on the grounds that there is a risk of politicization and loss of independence of the body.

Economists who worked for Tucano governments, however, praised the choice, highlighting Pestana’s background and work in the area of ​​economics.

The IFI was created at the end of 2016 by the Senate to serve as a kind of external monitor of the government’s fiscal policy, still under the impact of the impeachment of Dilma Rousseff (PT) —whose formal reason for her fall was due to the maneuvers that became known as “tax pedals”.

The board of directors is made up of three people: the executive director —appointed by the president of the Senate— and two directors —one chosen by the senators of the Committee on Economic Affairs and the other by those of the Committee on Transparency, Oversight and Control.

Since the creation of the IFI, the executive board has been in charge of names considered technical. First with economist Felipe Salto and then with fellow economist Daniel Couri.

At the head of the IFI since its inception, Salto resigned from his post in the first half of last year to take over as Secretary of Finance for the state of São Paulo under the management of Rodrigo Garcia (PSDB).

In order not to leave the institution without command during the seven months remaining until the beginning of the term of the next executive director, Pacheco raised Couri, the oldest director among the two remaining, to the executive board.

At the beginning of this year, Couri left the board of the IFI and accepted the invitation of the Minister of Planning, Simone Tebet (MDB), to be deputy secretary of the Federal Budget.

The expectation surrounding the executive board of the IFI then fell on another name coveted by Tebet, that of economist Vilma da Conceição Pinto, director of the institution since 2021.

The Minister of Planning never hid the invitations she made to Vilma —all of which were turned down— and her desire to assemble a more diverse team. The former senator even complained that it was “difficult” to find black women for the ministry because the salaries were not so attractive.

Questioned by journalists if there would be black women on her team, Tebet said she was “sewing” a name with the president of the Senate. “[Deve ter] one, that I’m taking from here [do Senado]”, said the minister in reference to Vilma.

Privately, people who follow the work of the IFI raise doubts whether Pestana will have the courage to oppose Pacheco, if necessary.

According to the resolution creating the IFI, members of the Board of Directors cannot even engage in any other professional activity, “including operational management of a company or political party affiliation”.

One of the founders of PSDB, Pestana resigned from the party last month, after 35 years, to fulfill the requirement of the future position. Last year, the former deputy was a candidate for governor of Minas Gerais, but came in fourth.

“I like him and the positions he defends. I don’t see a problem [de ter sido deputado]. It has a suitable profile and reputation,” said Armínio Fraga, who presided over the Central Bank in the second term of President Fernando Henrique Cardoso.

“I know him well. He has the technical qualifications for the position. I think he will value the IFI among parliamentarians for having been a deputy, it is more of an asset than a problem”, said economist Edmar Bacha, one of the formulators of the Real Plan.

Felipe Salto also praised Pacheco’s choice and said he was confident the institution would maintain its independence.

“[Marcus Pestana] brings together three qualities that could strengthen the Independent Fiscal Institution at this moment: he has experience in Brasília and Congress, he knows public accounts matters and has already worked in academia, the public and private sectors”, he said.

“The IFI’s power lies in the technical independence of the works it performs, such as reports that, today, are widely consulted by the market, by journalists, by parliamentarians, establishing a healthy counterpoint with the Executive”, he added.

Pacheco said, in a note, that Pestana has a resume compatible with the position.

“He has a degree in Economic Sciences, was a secretary of state and has in-depth knowledge in the area. The fact that he was a parliamentarian does not discredit him, on the contrary, it legitimizes him for a position of this nature.”

Pestana, who turned 63 this Tuesday (13), told the Sheet to see in the criticism a prejudice against the policy.

“I was a professor of economics at the Federal University of Juiz de Fora, secretary of Planning, Budget and Coordination in the first fiscal adjustment of post-Real states and debt renegotiation, president of the Budget Programming Board of Minas in the same period, member of several boards of directors of several state, state and federal companies,” said the former deputy, listing other points on his resume.

“I’ve always been known as a technical manager and also an academic. I’m a root economist, yes, who served 18 years in office, it’s true. But anti-political prejudice is free, anti-political discrimination has not yet been leveled with others that constitute a crime.”

To be executive director, Pestana must be questioned and approved by the Senate’s board of directors —composed of Pacheco and ten other senators— and then by the plenary of the House. If he is carried out, the former deputy will have his mandate in the IFI counted since November of last year.