See the questions about offshore Guedes did not answer deputies

Minister Paulo Guedes (Economy) failed to clarify, during his participation this Tuesday (23) in a committee in the Chamber of Deputies, questions about his resources allocated in a tax haven (offshore).

Guedes said he sent the funds between 2014 and 2015 to offshore with the aim of investing in American stocks, avoiding inheritance taxes in the United States and also defended that the mechanism is “absolutely legal”. The use of tax havens also avoids taxes in Brazil.

The minister failed to detail, for example, why he decided to keep the resources abroad even after taking office, if the participation of relatives in the offshore has some mechanism to avoid conflict of interest in investment decisions, if there are more companies abroad besides of revealed and who is managing the investments today.

When the deputies began to insist on the questions, the minister stated that he provides the information to the pertinent bodies (such as the Internal Revenue Service). According to him, this is not the case with deputy Kim Kataguiri (DEM-SP) – the author of one of the summons requests and who demanded different clarifications.

“There’s also something called privacy. You gentlemen would like to [dizer] ‘look, as we are legislators, when you come in here [no Congresso] have to open everything up and be public’? Then you can be chased by a neighbor, mugged by a neighbor. I opened everything, [mas] for the relevant instance,” Guedes said.

He stated that his resources are formed by his private ventures and recalled that he was one of the founders of the former bank Pactual (now BTG Pactual). According to the minister, the assets in the country that could benefit from him as a minister were sold before entering the government. “I divested of everything I was doing. I lost more than the value of offshore,” he said.

Guedes stated that a second group of resources, which are not directly (but indirectly) affected, were placed in the hands of a blind trust (blind manager, in the free translation, when the administrator and owner of the resources do not know each other).

The minister also used his time to defend data from his administration at the Ministry of Economy, the reform agenda, the measures taken by the government during the Covid-19 pandemic and the approval of the PEC (proposed amendment to the Constitution) of the Precatório .

See below unanswered questions (and unanswered requests):

Deputy Kim Kataguiri (DEM-SP):

• Considering that the family members remained [na offshore], doesn’t the separation from you make the separation innocuous?
• What made you keep society open even after being invited to take over the ministry?

• Are your wife and daughter still partners at offshore?

• Have they moved offshore since the beginning of the government? (Guedes replied that decisions are taken by independent managers, but he did not clarify who they are or if they are also independent from their relatives)

• Which papers were bought and which were sold?

Deputy Elias Vaz (PSB-GO):

• You put in the document [entregue à Comissão de Ética da Presidência da República] that the offshore is being managed by Banco Itaú. Its lawyers released a statement saying that it is being managed by companies that are not Brazilian. Who is missing the truth?

Deputy Rogério Correia (PT-MG):

• List the companies [todas elas] that it owns abroad.

Deputy Fernanda Melchionna (PSOL-RS):

• Article 5^O of the Code of Conduct of the High Federal Administration prohibits investing in companies in Brazil or abroad that may be affected by government policies […]. It’s your case. In addition to being Minister of Economy, you are a member of the National Monetary Council, responsible for foreign exchange and credit policy. Please, as there is no conflict of interest? (Guedes stated at another time that there is no conflict of interest, but he did not detail why his situation distances him from situations prohibited by law)
• Are you not benefited by the company even though you left the management?
• Does your daughter, Paula Drummond Guedes, still remain as director?

Deputy Bira do Pindaré (PSB-MA)

• Is this the only overseas account? Do you have other accounts abroad?
• you refuse to deliver [as informações]. What are you trying to hide?