Brazilians do not know where the buck stops…

This morning, the Brazilian Federal Police armed with arrest warrants, issued by the federal prosecutors and the Supreme Court, arrested Delcidio Amaral, senior senator for the Workers Party and Senate Leader, and Andre Esteves , billionaire CEO/owner of investment bank BTG Pactual. Both charged with trying to buy the silence of ex Petrobras International Director Nestor Cevero, jailed for the Petrobras corruption investigation and recently turned State’s witness. Yesterday, ex – president Lula’s close friend, rancher Jose Carlos Bumlai, was also arrested by the Federal Police on corruption charges involving the Petrobras investigation and influence peddling.

Andre Esteves,  golden boy turned billionaire investment banker these last 12 years, has many direct and indirect ties to Petrobras and government: BTG Pactual recently purchased all of Petrobras’s African oil assets at favorable terms and conditions, the bank is shareholder and creditor of Sete Brasil, company created with Petrobras and others to operate several drilling rigs leased to Petrobras and has been implicated in the Petrobras scandal. The bank has been involved in several large transactions involving large construction companies, including Odebrecht and subsidiaries, being investigated by Federal prosecutors for corruption and money laundering involving Petrobras and the Workers Party.

Delcidio Amaral is a senior senator and ex-governor of the Workers Party. Senate Leader and Chairman of the Economic Affairs Committee and key government spokesman in the efforts to pass badly needed austerity measures. At one time, the senator was a director at Petrobras.

The government, markets and population were taken by surprise to say the least. The Federal Prosecutors and Judges in charge of the “Car Wash” investigation, as the Petrobras investigation is known, have tried and jailed influential public figures, the heads of the largest construction companies, directors of Petrobras, foreign companies, operators and money exchangers and now the most successful investment banker. Where will it stop is the billion dollar question…..