Is anything goes in the fight against corruption?

The president of BNDES, Paulo Rabello de Castro, recently stated that the investigators of Operation Lava Jato need to learn economics, because while combating corruption is fundamental, essential, and cannot be postponed in Brazil, it is also necessary to teach prosecutors that unemployment and business closures result from their decisions.

He also stated that the private sector lacks "animal spirit," but that major development projects are under the "Lava Jato" effect, meaning that no large construction company remains registered to qualify with the BNDES (Brazilian Development Bank). He reportedly said: "They are throwing the baby out with the bathwater. There is no cost-effectiveness in judicial decisions."

I am following with great interest the infra-procedural developments concerning the so-called "Operation Lava Jato," because, despite supporting all forms of investigation carried out by the institutions, functions, or powers of the republic, I am radically opposed to the excesses that occur.

The excesses, abuses, and arbitrary actions committed—directly or indirectly—by the self-proclaimed guardians of morality in Curitiba deserve the attention and criticism of all those who defend the federal constitution, the application of substantive and procedural laws, and believe in respect for the social and democratic rule of law, due process, and the broad right to defense.

Corruption must be investigated and denounced, and those who corrupt and those who are corrupted must be prosecuted and convicted according to the law. However, combating corruption is not the only valid and necessary agenda for the country, and it is not only corporate and political corruption that deserves exemplary action. There are other forms of corruption that deserve attention and punishment, because the liberal system is corrupt and corrupting, and its structures and institutions are too, but sometimes these are trivialized and normalized.

An example of the normalization of wrongdoing (and of corruption being systemic and institutionalized) is the multimillion-dollar payments to magistrates throughout Brazil.

There are reports that the payroll of the Court of Justice of Rio de Janeiro presents embarrassing distortions.

In that system, judges and magistrates, even those who had just entered the profession, were earning between 40.000 and 150.000 reais monthly in 2012. The minimum wage at the time, 24.117,62 reais, was inflated by "occasional benefits and compensation." Some judges received 400.000 reais each in just one year, solely in bonuses. This is a clear example of normalized, systemic, and institutionalized corruption, corruption that must be combated.

For the record: in December 2010, the wealthiest judge in Rio de Janeiro received 511.739,23 reais; another received deposits into his account that month totaling 462.000 reais, in addition to his salary; and a third judge received 349.000 reais. In total, 72 judges received more than 100.000 reais, with six having incomes exceeding 200.000 reais.

In other words, corruption is not limited to politics or business activity.

In this context, the question arises: do the ends justify the means, or in other words, is anything goes in the fight against corruption?

I don't think so. The direct and indirect impacts of Operation Lava Jato on the economy took R$ 140 billion from the Brazilian economy in 2015 alone, equivalent to a 2,5% contraction of GDP, and in 2016 it exceeded R$ 100 billion, which represents a huge impact on GDP. And note: these calculations are not from any Bolivarian, they are studies by the consulting firm GO Associados, presented in advance.

The economic impact of the unorthodox methods of the 13th Federal Court of Curitiba and the Paraná Federal Public Prosecutor's Office, some of which are driven by certainties stemming from a kind of fanaticism, will be felt for more than a decade; an army of unemployed people should ask these gentlemen what to do, after all, the reduction in investments by Petrobras and the public works construction sector, accounting for losses in the gross value of production, jobs, wages and tax revenue, is enormous, as is the contraction in investments by leading companies in the civil construction sector that are under investigation, estimated at 30%.

Obviously, it's not all the fault of Lava Jato's methods, but the modus operandi greatly aggravated what was already a delicate situation.

A study estimated a drop of R$ 22,4 billion in total wages in 2015, a decrease of R$ 9,4 billion in tax revenue, and a loss of up to 1,9 million jobs. This was in 2015, when the largest number of layoffs had not yet occurred.

When I referred above to "heterodox methods," I am referring to the excessive publicity surrounding the disclosures of matters that are still under investigation, the devastating effects on company value and credit availability, and the fact that the halting of projects undertaken by companies under investigation generates costs and reduces competition.

The Judiciary, and I'm referring specifically to the 13th Federal Court of Curitiba and the Supreme Federal Court, is largely responsible for the chaos in the country, because, while a portion of it would be unavoidable given the need to conduct a comprehensive and thorough investigation, a major portion of this cost could be avoided if due care were taken.

The objective of the Powers of the Republic is the construction of a free, just and supportive society, guaranteeing national development, eradicating poverty and marginalization, reducing social and regional inequalities, and promoting the well-being of all, without prejudice based on origin, race, sex, color, age, or any other form of discrimination. This objective cannot be achieved by pulverizing the GDP and generating unemployment.

Does the "Lava Jato" team believe that the ends justify the means? Something to think about.