Investigations show illegal campaign financing part

 Illegal campaign financing has been an intrinsic part of Brazil's political landscape for generations, an ongoing investigation into graft revealed on Monday.

Brazil's former minister of justice, Jose Eduardo Cardozo, told reporters undeclared donations to political parties were "historic (and) cultural."

Cardozo spoke with reporters after testifying via videoconference call before Judge Sergio Moro, who leads Operation Car Wash, a long-running investigation into bribery and kickbacks at state oil giant Petrobras and the construction companies it contracted, including Odebrecht.

Cardozo, a witness for the defense of former Finance Minister Antonio Palocci, said that while the practice of contributing to what is known in Brazil as "Box 2," in reference to a second cashbox that is off the books, was illegal, it did not always conceal a bigger crime.

"Regrettably, the Box 2 in Brazil is historic (and) cultural, but it doesn't always hide corruption. Sometimes money is donated without effectively knowing its origin," said Cardozo.

"Is it illegal? It is. Is it reprehensible? It is. Is it ethically reproachable? It is. But it should not necessarily be confused with corruption or money laundering," said Cardozo.

However, the practice is the result of "an anachronistic political system that has to be replaced," he added.

More than a hundred politicians in Brazil have been accused of receiving illegal campaign funding from builders, such as Odebrecht, in exchange for lucrative construction contracts, and some lawmakers are calling for a blanket pardon.

Emilio Odebrecht, patriarch of the family empire, also testified on Monday, affirming what Cardozo said by admitting the company has been making illegal contributions to politicians "since my father's epoch."

His son and company President Marcelo Odebrecht is currently serving a 10-year sentence for bribery.

The Box 2 practice "was the reigning model in the country until recently," the father added. "There were obstacles beginning in 2014 and 2015, but up until then, it always existed; since the epoch of my father, in my epoch and in Marcelo's epoch."

Between 2006 and 2014, Odebrecht reportedly paid nearly 3.4 billion U.S. dollars in bribes and other illegal payments, 60 percent of that in Brazil and 40 percent in other countries where the company did business.

source: Xinhua