Brazil Risks Becoming Narco-State, Warns Former Judge

Wálter Maierovitch, a former judge of the São Paulo Court of Justice, has issued a sobering warning that Brazil is at risk of becoming a narco-state due to the expanding influence of criminal factions, money laundering through bus companies, and inadequate oversight of chemical inputs sold to cocaine-producing countries.

Maierovitch highlighted the growing power of criminal organizations in Brazil, which are not only expanding their operations but also infiltrating legitimate businesses such as bus companies to launder money. He specifically pointed to a recent major operation in São Paulo against the country's largest criminal organization, the PCC (First Commando of the Capital).

The operation, called 'End of the Line', was carried out by the Special Action Group against Organized Crime (GAECO) of the São Paulo Public Ministry (MPSP) following a 4-year investigation. It targeted two bus companies, UpBus and Transwolff, suspected of being infiltrated by the PCC to launder money and embezzle public funds. The PCC had allegedly founded or financed these companies to bid on public tenders. In 2023 alone, the two companies received over 843 million reals (150 million euros) from the city of São Paulo to operate bus routes.

The investigation revealed that the PCC was using various schemes, including the use of 'oranges' (individuals affiliated with the PCC buying shares in the companies) and shell companies, to launder around 54 million reals (10 million euros) from drug trafficking. The prosecutor in the case cautioned that Brazil risks becoming a narco-state due to the criminal factions' expansion and lack of oversight on chemical inputs sold to cocaine-producing countries.

Why this matters: The infiltration of criminal organizations into legitimate businesses and public services in Brazil poses a serious threat to the country's stability and security. The lack of oversight on chemical inputs sold to cocaine-producing countries further exacerbates the problem, potentially fueling the global drug trade.

Maierovitch also raised concerns about the lack of regulation and monitoring of chemical inputs that are being diverted to cocaine production in neighboring countries. "Brazil risks becoming a narco-state due to the criminal factions' expansion and lack of oversight on chemical inputs sold to cocaine-producing countries," the prosecutor in the case cautioned. The article highlights that the PCC has become a mafia-like organization with transnational operations, infiltration of public powers, and financing of political campaigns, underscoring the significant challenges Brazil faces in combating organized crime and drug trafficking.

Key Takeaways

• Former judge warns Brazil risks becoming a narco-state due to criminal factions.
• Criminal organizations like PCC infiltrate legitimate businesses to launder money.
• PCC allegedly founded/financed bus companies to bid on public tenders in São Paulo.
• Lack of oversight on chemical inputs sold to cocaine-producing countries exacerbates issue.
• Organized crime and drug trafficking pose significant challenges to Brazil's stability.