Antonio Palocci

Antonio Palocci
Chief of Staff of the Presidency
In office 1 January 2011 – 7 June 2011
President	Dilma Rousseff
Preceded by	Erenice Guerra
Succeeded by	Gleisi Hoffmann
Federal Deputy for São Paulo
In office 1 February 2007 – 1 February 2011
In office 1 February 1999 – 1 January 2001
Minister of Finance
In office 1 January 2003 – 27 March 2006
President	Luiz Inácio Lula da Silva
Preceded by	Pedro Malan
Succeeded by	Guido Mantega
65th and 67th Mayor of Ribeirão Preto
In office 1 January 2001 – 31 March 2002
Preceded by	Luiz Roberto Jábali
Succeeded by	Gilberto Maggioni
In office 1 January 1993 – 31 March 1996
Preceded by	Welson Gasparini
Succeeded by	Luiz Roberto Jábali
State Deputy of São Paulo
In office 1 February 1991 – 1 January 1993
Alderman of Ribeirão Preto
In office 1 January 1989 – 1 February 1991
Personal details
Born	Antonio Palocci Filho (1960-10-04) 4 October 1960 Cosmorama, São Paulo, Brazil
Political party	Workers' Party
Residence	Brasília, Brazil

Antonio Palocci Filho (born 4 October 1960) is a Brazilian physician and politician, and formerly Chief of Staff of Brazil under President Dilma Rousseff. He was the finance minister of the Brazilian federal government from 1 January 2003 to 27 March 2006, when he resigned in the wake of reports of conduct unbecoming of his office during the presidency of Luiz Inácio Lula da Silva. He resigned as Chief of Staff on 7 June 2011.

Early life and career

Palocci was raised in Ribeirão Preto, in the state of São Paulo. His father was an artist and teacher. During his youth as a medical student at the University of São Paulo’s Ribeirão Preto Medical School, Palocci took part in several radical movements. He was one of the founders of the Workers' Party and was its president in São Paulo from 1997 to 1998.

After graduation, Palocci worked for five years as a civil servant at the Ribeirão Preto regional office of the São Paulo State Public Health Secretariat. He implemented the Workers’ Health Ward and was the director of the regional office of the public health service.

When Palocci was 28 years old, after occupying positions in various labour unions, including the CUT (linked to the Workers Party) he ran for election as a city councilman (vereador) for the first time. Since then, Palocci has never lost an election. However, he completed only one of his terms (as mayor of Ribeirão Preto, from 1993 to 1996.

Political career

Palocci was elected councilman in Ribeirão Preto in 1988. He did not finish his term but stepped down to for the office of state deputy and won. In 1992, he resigned his term as deputy to become mayor of Ribeirão Preto, after winning the local election. It is during his administrations as mayor that Palocci is alleged to have led a major slush fund operation (see below) for the Workers' Party, a scheme denounced by a former secretary, Rogério Buratti.

In 1995, he received the UNICEF’s Child and Peace prize for his work for the rights of infants and adolescents. In 1996, he received the Juscelino Kubitscheck Award from SEBRAE-SP, the São Paulo chapter of the Serviço Brasileiro de Apoio às Micro e Pequenas Empresas (Brazilian Service for Assistance to Small Businesses), for being the mayor of the city in São Paulo state who offered the best support to small business. In 2002, he received the Mário Covas Award from SEBRAE again for his work on behalf of local small businesses.

Palocci was elected federal deputy in 1998. In 2000, he resigned his office so that he could run again in the mayoral election in Ribeirão Preto. He won the election, and was again mayor of Ribeirão Preto from 2001 to 2002. He resigned in 2002 to work on Luiz Inácio Lula da Silva's campaign for the Brazilian presidency. In 2003, when Lula was elected, Palocci officially resigned as the mayor of Ribeirão Preto, was nominated the Finance Minister of Brazil and became a key figure in the new government.

Along with former minister José Dirceu (who resigned and subsequently lost his political rights due to involvement with the Mensalão scandal), Palocci was considered one of the most influential and strong ministers of Lula’s government.

On 1 January 2011, President Dilma Rousseff appointed him Chief of Staff. He resigned in July 2011.^[1]

Mayoral corruption allegations

In 2005, Antonio Palocci was also involved in the Mensalão scandal, after being accused by Rogério Buratti, his former secretary in the Ribeirão Preto municipal government. According to Buratti, between 2001 and 2004, Palocci received a R$50,000 monthly payment from Leão & Leão, a garbage collection company. Investigations are still underway.

Palocci, however, denied this and accused the prosecutors of leaking the preliminary results of an ongoing investigation.

Ministerial abuse of power

A new scandal began to unfold in 2006 after a parliamentary inquiry heard testimony from two witnesses who claimed that the minister had visited a manor house in Brasília suspected of functioning as a hub for fraudulent operations within the government, with the participation of some of his closest aides.^[2] Palocci had previously claimed that he had never been to that house. Some Congressmen said at the time that he could face criminal charges for lying to a parliamentary committee.

The main witness in the case was Francenildo Costa, the groundskeeper of the property. He said the minister had visited the house "on at least ten, twenty occasions" and said he could clearly recognize Palocci as the man he had seen in the meetings of senior PT members and governmental officials at the house.

A few days after Costa's deposition, his bank statement (from government-run Caixa Econômica Federal) was suddenly and mysteriously leaked to the press. It seemed to indicate that the groundskeeper had a balance of R$38,860 (about US$18,000.00), which would be incompatible with his income. This was immediately linked by congressmen to his motivations for contradicting the minister, apparently in an attempt to tarnish his credibility as a witness - although, in fact, he had been the second witness to contradict Palocci. The groundskeeper justified the figures by claiming that the money had been deposited by his alleged biological father, a relatively well-off businessman from the state of Piauí, in order to prevent a legal dispute over paternity. The alleged father confirmed he had deposited the money.

With this prompt explanation generally accepted, the focus of attention turned to the fact that the bank statement had been illegally revealed, in breach of Costa's fiscal privacy. The opposition and a great part of the media called the illegal release of Francenildo's bank statement state-orchestrated harassment. The Federal Police of Brazil began an investigation into the case, which soon spiralled into a scandal for the Lula administration: a series of officials and directors at the Caixa Econômica Federal (a state bank) confessed to violating the confidentiality of Costa's account confidentiality following orders from superiors. The chain of command, police found, went up as far as the Ministry of Finance, and the bank's chairman said that he handed the details of the account to Palocci personally. The minister denied this, but abruptly resigned on March 27, 2006, and was immediately replaced by economist Guido Mantega.^[3]

On 26 September 2016, Palocci was imprisoned in the city of São Paulo by the Federal Police of Brazil as part of the Lava Jato (Car Wash) corruption investigation.^[4][5]

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