Halister News

(Bloomberg) -- Rio de Janeiro’s former governor Sergio Cabral was sentenced to 14 years and two months in jail for passive corruption and money laundering, according to a decision by Carwash judge Sergio Moro published on Tuesday.

• Cabral received about 2.7 million reais ($820,000) in bribes for earth moving works in the construction of Petroleo Brasileiro SA’s Comperj petrochemical complex, prosecutors said
• Cabral has been accused in at least nine other criminal cases in Rio de Janeiro for taking bribes from most public works carried out in the state, according to Moro
  • “The fact is scary and reveals systematic practice of serious corruption crimes,” Moro wrote in the decision
• Note: Rio de Janeiro has declared a state of “fiscal calamity” as the administration runs out of money to provide basic services to the population and to pay public servants on time
• NOTE: Brazil Government Deal With Rio Won’t Solve Its Debt Crisis
• “One can not ignore the nearly-bankrupt reality of Rio’s state government, with the population and public servants suffering,” Moro wrote. “Despite being the result of a number of factors, it also originates in the systematic collecting of bribes by the former governor and his associates”
• Two of Cabral’s aides were also sentenced to more than 10 years in jail each
• Cabral’s wife Adriana Ancelmo acquitted by Moro
• Lawyers for Cabral weren’t immediately available for comment

--With assistance from Kariny Leal. To contact the reporter on this story: Walter Brandimarte in Rio de Janeiro at wbrandimarte@bloomberg.net To contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net Peter Millard

--Washington Newsroom (202) 624-1820

(Bloomberg) -- Finance Minister Malusi Gigaba signs and gazettes coming into operation of various provisions of Financial Intelligence Centre Amendment Act, National Treasury says in emailed statement.

• Critical for govt to accelerate implementation of act as it demonstrates govt’s commitment to fight against corruption, money laundering and illicit flows, Gigaba says
• More work still needs to be done, he says
• Implementation of different provisions of act to start on different dates: today, Oct. 2, and dates to be determined thereafter, but expected to be no later than end-2018
• 1st set of provisions, which commence today, don’t require changes to existing regulations, exemptions or internal systems of institutions to enable compliance with the FIC Act
• NOTE: FIC Amendment Act was signed into law by President Jacob Zuma on April 26 and gazetted on May 2, but commencement date was left to finance minister
• Link to statement

--Washington Newsroom (202) 624-1820

--VINCENT BIELSKI