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The chief economic policy adviser to Jair Bolsonaro, Brazil's leading presidential candidate, is being investigated by federal prosecutors for allegedly taking part in fraud linked to the pension funds of major state-run companies, a prosecutor with direct knowledge of the case told Reuters.
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The investigation, first made public by the Folha de S.Paulo newspaper Wednesday, alleged that the adviser, Paulo Guedes, mismanaged one billion reais that public pension funds injected into his investment vehicles starting in 2009.
Prosecutors are probing a decision to invest in a company in which Guedes was the controlling shareholder, along with tens of millions of reais in payments made as speaking fees to unknown parties using some of this money, the prosecutor said, confirming Folha's reporting.
Bolsonaro, who met Guedes for the first time last year, is not accused of any wrongdoing.
This is the first time that a member of Bolsonaro's inner circle of advisers has been the subject of a major corruption investigation. Bolsonaro has said Guedes would be his economy minister if he wins the election.
In the past four years, Brazilian investigators have discovered what some have called the world's largest political corruption schemes ever found.
The extent of the graft schemes has fueled Brazilian voters' outrage at traditional parties, helping to propel the anti-establishment Bolsonaro to top the presidential field. While he claims he would fight corruption, his agenda includes privatization, lowering taxes on the rich and minimizing state control over the economy.
He has repeatedly expressed support for the neoliberal military dictatorship, torture and military coups. He is also known for his sexist, racist and homophobic comments.
The newspaper said the investigation was opened on Oct. 2, five days before Brazil's first-round presidential vote in which Bolsonaro took 46 percent of the ballots, while Fernando Haddad, the candidate of the leftist Workers' Party, had 29 percent. The two will face each other in an Oct. 28 runoff.
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