São Paulo has only recovered 15% of the US$32 million embezzled by Maluf.
It has been a year since the Jersey court convicted him and authorized the return of the money to the public coffers of the São Paulo capital, but according to an article in the newspaper O Estado de São Paulo, the remainder of the money is "entangled" in negotiations with financial institutions that have been accused of facilitating the evasion of funds; in 2012 the Jersey Court ruled in favor of Brazil and ordered that US$ 32 million in the name of Maluf and his son Flávio be returned to the city.
SP 247 - The São Paulo City Hall has only managed to repatriate approximately 15% of the US$32 million fortune embezzled by former mayor Paulo Maluf (current congressman for the PP party). It has been a year since the Jersey court convicted him and authorized the return of the money to the public coffers of the São Paulo capital.
According to an article in the newspaper O Estado de São Paulo, the remaining money is "entangled" in negotiations with financial institutions that have been accused of facilitating the evasion of funds.
In November 2012, the Jersey court ruled in favor of Brazil and ordered that US$32 million in the name of Maluf and his son Flávio be returned to the city. Despite the conviction and having his name included on Interpol's wanted list, the former mayor denies any connection to the accounts on the British island.
Of the total, US$6 million was deposited in cash and was repatriated in May 2013. The remainder is secured by shares in Eucatex, a company created by Maluf, which need to be sold.
The money was allegedly diverted from projects such as the construction of Avenida Jornalista Roberto Marinho (formerly Água Espraiada), sent abroad, and returned to Brazil through funds that acquired a significant stake in Eucatex. It is estimated that 30% of the company belongs to these funds, whose shareholders included companies belonging to Flávio Maluf.
In Jersey, judicial sources told the newspaper Estado that they are "surprised" by the city government's delay in recovering the frozen funds. Authorities in the tax haven are using the Maluf case as proof that they are willing to cooperate with international justice in order to alleviate pressure from governments that accuse them of helping corrupt individuals hide money.
According to Estadão, "a high-ranking official from the Jersey Justice Department" stated that "we have already sent more than one inquiry to Brazil to find out what they would do. What is strange is that nothing prevents these assets from being sent to Brazil."
The São Paulo City Hall, according to an article in O Estado de São Paulo, explains that it is relying on a strategy of trying to recover, in partnership with the Public Prosecutor's Office, the largest possible amount of money in other legal proceedings. The objective is to repatriate the total value of Eucatex shares that are blocked in Jersey, which far exceed the current US$32 million.
The acting Secretary of Legal Affairs for the City Hall, Robinson Barreirinha, says that negotiations are underway between the Public Prosecutor's Office and financial institutions that helped Maluf's son's companies in establishing the funds and purchasing Eucatex bonds.