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Rio Court Convicts Cabral and Pezão, Imposes Over R$4 Billion and Suspends Political Rights

An MPRJ case from 2018 detailed illicit tax breaks linked to undeclared campaign donations.

Overview

  • Judge from the 15th Civil Court of Rio found Sérgio Cabral, Luiz Fernando Pezão, and ex-secretary Hudson Braga liable for administrative improbity, illicit enrichment, and damage to the treasury.
  • Penalties total more than R$4 billion: Cabral owes over R$2.5 billion, Pezão more than R$1.4 billion, and Braga more than R$35 million.
  • Political rights were suspended for 10 years for Cabral, 9 years for Pezão, and 8 years for Braga.
  • The ruling ties Cabral to irregular benefits for Fetranspor and orders Pezão to repay R$1.374 billion over an improper FUNDES loan to Grupo Petrópolis tied to Odebrecht’s off-books payments known as caixa 3.
  • The sentence includes collective moral damages and additional fines, and it states the schemes caused concrete harm to state finances and contributed to Rio’s fiscal crisis; the defendants can appeal.