Lula’s allies set up an offensive to wall up Campos Neto and even get him out of BC

The president of the Central Bank, Roberto Campos Neto, returned to the sights of allies of President Luiz Inácio Lula da Silva (PT) after the institution decided to maintain the basic interest rate at 13.75% last week. The target now, however, is not just with notes or critical speeches for not signaling the beginning of a loosening of the Selic, but a possible removal and even removal from office.

One of the strategies studied is to use a lawsuit filed at the Federal Court of Auditors (TCU) to investigate alleged accounting inconsistencies of BRL 1 trillion in the balance sheet of the monetary authority for 2019, according to data collected by the Comptroller General of the Union (CGU).

After due diligence, CGU auditors concluded that the statements “do not adequately reflect, in all relevant aspects, the equity situation, the financial result and the cash flows of the BC”, according to a report to which the Folha de São Paulo newspaper had access.

Central Bank auditors explained to the rapporteur for the process, Minister Jonathan de Jesus, that there was nothing wrong with the accounts presented and that balance sheets for later years were approved without reservations by the TCU itself.

Jonathan de Jesus was sworn into office in March of this year after the departure of Ana Arraes, who presided over the court and retired. He requested a series of documents and balance sheets from the BC to make a new analysis of the process and, subsequently, to bring it to trial in the plenary of the court.

In case of conviction, the Senate could open a process to revoke Campos Neto’s mandate.

senators aim offensive

On another front, Senator Ana Paula Lobato (PSB-MA) made official a request to the National Monetary Council (CMN) for the removal of the President of the Central Bank for “proven and recurrent insufficient performance to achieve the institution’s objectives”. The body, made up of the president of the monetary authority and the ministers of Finance and Planning, defines, among other indices, inflation targets.

“We officially request the resignation of the BC president, due to his persistence in unjustifiably maintaining interest rates, compromising the country’s economy,” said the senator on a social network.

Also in the Senate, Senator Randolfe Rodrigues (without party-AP), leader of the government in the National Congress, filed a request with the Economic Affairs Commission (CAE) to invite Campos Neto to provide clarification on the decision to keep the Selic at 13 .75%.

“The president of the Central Bank has to explain why he is acting against Brazil and against reality. Maybe I wouldn’t even go into the merits of maintaining the rate. Now, the entire market was waiting for a reduction projection [da taxa] from August. What the Central Bank gentleman is saying to us is that perhaps the reduction projection is for 2024. Are you going crazy? Are you going crazy?”, he said in an interview with GloboNews last week.

Campos Neto may also have to give explanations to ministers Fernando Haddad and Simone Tebet, with whom he should meet later this week to discuss the inflation targets for the coming years at the CMN.