TRF-1 unanimously confirms decision to drop action against Dilma for “tax pedaling”

TRF-1 unanimously confirms decision to drop action against Dilma for “tax pedaling”

The Federal Regional Court of the 1st Region (TRF-1) of Brasilia unanimously upheld the dismissal of the impropriety action against former president Dilma Rousseff in the “tax pedal” case, a practice revealed by the Stadium who supported the impeachment of the Petitist. The decision also benefits others involved in the scheme, such as former Finance Minister Guido Mantega, former Banco do Brasil chairman Aldemir Bendine, as well as former BNDES chairman Luciano Coutinho and former Treasury secretary Arno Augustin.

The decision was issued after the collegiate of the 10th College of the TRF met to judge an appeal by the Federal Public Prosecutor’s Office (MPF) against the first instance decision that filed a lawsuit against the defendant last year. At the time, the MPF accused Dilma and the other members of the government of impropriety for the alleged use of public banks to “supply the fiscal result”, which delayed, by the Union, the transfer of values ​​to the institutions, a fact which became known as “tax pedals”.

The MPF action still called for the loss of public function of the subjects involved; suspension of political rights from three to five years; payment of a fine of up to 100 times the remuneration of each public body, as well as a ban on receiving tax benefits or incentives for three years and compensation for collective moral damage.

The processing of this action in the 4th Federal Court of Brasilia resulted in the exclusion of both Dilma and Mantega from the trial. Subsequently, the new trials against the other defendants were also filed due to forfeiture of the charges.

Rapporteur and judge Saulo Casali Bahia, judge Marllon Souza and judge Marcos Vinícius Reis Bastos voted on Monday 21 in favor of maintaining the archive.

What were ‘tax pedals’

The “fiscal pedal” was the name given to the National Treasury’s practice of deliberately delaying the transfer of money to banks (public and private) and autarkies, such as the INSS. The goal of the Treasury and the Department of Finance was to artificially improve the federal accounts. By failing to transfer the money, the government presented lower monthly expenditures than they should in practice and thus misled the financial market and fiscal specialists.

Revealed by Stadium in the first half of 2014 the mechanism had already started to occur since 2013. In 2015, in Dilma’s second term, with Joaquim Levy as finance minister, the new economic team admitted that the “pedals” existed and engaged in corrections .

Since the revelation, the Public Prosecutor’s Office (MP) together with the Federal Court of Accounts (TCU) have requested the opening of an investigation into the Dilma government’s economic team. Subsequently, the report produced by the agency’s auditors confirmed the “fiscal pedal”. The case went to trial at the TCU, which unanimously opted to convict the government and have 17 government officials explain the mechanism.

The fact served as an argument for Dilma’s impeachment request. Presented by jurists Hélio Bicudo, Miguel Reale Júnior and Janaína Paschoal in October 2015, the document called for the dismissal of the then president, on charges of having committed a liability offense by issuing three supplementary credit decrees without the authorization of the National Congress and delay the transfer of Treasury resources to public banks to pay for social programs.

Dilma was impeached in 2016 after a trial in the House and Senate was pending. She was permanently removed from office in August of the same year. The entire procedure was followed by the Federal Supreme Court (STF).

Source: Terra

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