A ferocious economic and political scandal, which awakens memories of the notorious “Lava Jato” affair, shocks Brazil, hitting this time the hard core of President Luis Inácio Lula da Silva’s government.
The country’s Federal Police targeted the head of the ruling Workers’ Party (PT) in the Senate and Lula’s close ally, Jacques Wagner, as suspected of taking bribes from Banco Master Bank, which closed in late 2025 leaving a huge financial deficit.
As part of a wide-ranging operation to execute 18 search warrants, authorities raided the hotel where Senator Wagner resides, as well as addresses linked to him, tracking down about $90,000 in cash (in dollars and euros).
According to the reasoning of the Supreme Court judge, Andre Mendonsa, there are indications of an illegal payment of 3 million reais (about half a million dollars) to the close family circle of the politician in October 2025, shortly before the bank was put into liquidation due to a lack of liquidity.
At the same time, investigators suspect that Banco Master gave the senator a gift of a luxury apartment under construction on the 17th floor of an underground tower in Salvador de Bahia, the capital of the state where he served as governor, while systematic payments of money through his bride are also being considered.
Wagner himself, on the Senate floor, categorically denied the charges, challenging authorities to present evidence against him and arguing that his bride’s business with the bank was conducted under Bolsonaro’s rule, without his mediation.
A scandal with tentacles across the political spectrum
The case of Banco Master, which left behind a $10 billion “black hole”, is turning into a systemic risk for Brazil, as revelations show that its owner, young banker Daniel Vorcaro, had woven a dense network of protection and influence by offering interest rates well above market prices.
Before targeting the left, the scandal had already hit the right-wing opposition hard. Recent journalistic revelations have brought to light Vorkaro’s relationship with Flavio Bolsonaro, son of former President Jair Bolsonaro.
The banker allegedly financed a biographical film about the former president with $10 million, which caused Flavio Bolsonaro to plummet in the polls despite his assurances that it was a purely private transaction.
The list of politicians under investigation also includes former Bolsonaro minister Ciro Nogeira and current House Speaker Hugo Mota. More worryingly, however, the leaks of the investigations even involve the judiciary, leaving shadows over suspicious links between family companies of two Supreme Court judges and the banker in question.
Brazil is once again facing the nightmare of widespread institutional corruption, proving that past practices are hard to eradicate.
