There is evidence that Bumlai misused Lula's name, says Judge Moro

Federal Judge Sérgio Moro announced Tuesday (Nov. 24) that there is evidence that the rancher José Carlos Bumlai, arrested during the 21th stage of Operation Car Wash, has misused the name of former President Luiz Inácio Lula da Silva for personal interests. The statement was attached to the dispatch in which Moro ordered the prison of the businessman, who is a friend of the former president.

In the ruling, the judge also said there was no evidence connecting the former president to the facts investigated by the Federal Police. The alleged use of Lula's name was one of the reasons given by Moro to explain the businessman's prison.

"There is no evidence connecting the former president to the illicit facts, but the behavior of the investigated José Carlos Bumlai dispels the natural fear to have the same name used in some way, though improperly, to obstruct or to interfere in the investigation or proceedings. Such events would have the potential to cause damages not only to the case, but also to the former President's reputation. [Thus] preventive [detention] was necessary to minimize both risks," explained Moro.

According to Federal Prosecutor Diogo Mattos and testimonies given by those under probe as part of a whistleblower deal, the loan was actually intended to get to the Workers' Party (PT) and was paid by hiring Schahin as the drillship operator of Victoria 10,000, from Petrobras, in 2009.

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Through its press office, the PT declared it would not comment on the prison of businessman-rancher José Carlos Bumlai. The Institute Lula said they would not comment either. Reporters from Agência Brasil called the office of the rancher's attorney, Arnaldo Malheiros Filho, but they have not spoken to reporters. Banco BMG that bought Banco Schahin in 2011 said, through their advisory office, they will not comment on the operation. The Schahin Group website on the internet is unavailable for maintenance and the reporters could not contact a representative of the group.

* With additional reporting by Michèlle Canes and Bruno Bocchini

Translated by Amarílis Anchieta