Feb 11 • 20:12 UTC 🇧🇷 Brazil Folha (PT)

TCU Minister imposes secrecy and restricts Central Bank's access to inspection report on Master case

The TCU Minister Jhonatan de Jesus has imposed confidentiality on a report regarding the Central Bank's actions in the Master case, restricting the institution's access to the document.

Jhonatan de Jesus, a minister of the TCU (Tribunal de Contas da União, or Brazilian Federal Court of Accounts), has recently imposed a confidentiality rule on a technical report created following inspections on the Central Bank related to its handling of the Master case. This restriction limits the Central Bank's access to this document, which they previously had due to their engagement in the oversight process. The decision has raised significant concern within the monetary authority over potential issues of transparency and accountability, resulting in fears that this could allow for dubious actions by the reporting minister.

Moreover, insiders familiar with the situation have indicated that the report produced by AudBancos—responsible for supervising processes involving public financial institutions and regulatory bodies—was favorable to the Central Bank. Notably, it did not include any reservations or recommendations regarding the Central Bank’s actions during the liquidation process of the Master case, suggesting prior oversight and adherence to regulations by the Bank.

This development may have broader implications for the relationship between the Central Bank and the TCU, as it points to growing tensions surrounding oversight and accountability in Brazil's financial institutions. If left unaddressed, the move could erode trust in the regulatory processes, highlighting the critical need for transparency in financial oversight, especially in contentious cases like Master, which involve significant public resources and regulatory scrutiny.

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