Brazilian police search Lula ally in Banco Master corruption probe
Senator Jaques Wagner denies wrongdoing after Brazil's Supreme Court authorized a search tied to the failed bank Banco Master.
By Daniel Okafor · Business Editor
3 min read
Brazilian federal police searched properties linked to Senator Jaques Wagner, a close ally of President Luiz Inacio Lula da Silva, as investigators expanded a corruption inquiry tied to Banco Master. The case matters because it has reached senior figures around Brazil’s 2026 presidential race and raised questions about whether the failed lender bought political support.
Federal police said on Thursday that officers carried out 18 search-and-seizure warrants in Brasilia and in the states of Bahia and Sao Paulo. One warrant targeted Wagner, 75, a former governor of Bahia and a senior figure in the governing Workers’ Party coalition in Congress.
Police described the action as part of an investigation into financial “irregularities” connected to Banco Master. Brazilian courts ordered the bank liquidated last year, and its owner, Daniel Vorcaro, was arrested in March on accusations including fraud and money laundering.
Brazil’s Supreme Court authorized the warrant involving Wagner so investigators could examine what it called a “possible illicit relationship” between the senator and Banco Master. The court said Wagner may have obtained improper benefits from the bank, including private jet use, an apartment and millions of dollars.
According to the court, investigators are examining whether Wagner acted for Banco Master’s benefit by supporting a proposed constitutional amendment that would have increased the amount covered by a bank-financed insurance fund during crises. The proposal failed.
Other warrants carried out Thursday included one aimed at Augusto Lima, identified as a former business partner of Vorcaro.
Wagner denied illegal conduct and said he had not received money from Banco Master. In a post on social media, he said his assets were clean and said Lula had called him to express solidarity and confidence.
The Workers’ Party caucus in the Senate also backed Wagner. In a statement, the group pointed to his explanation and urged supporters not to fear the investigation.
Bank scandal reaches presidential contenders
The Banco Master case has also touched Brazil’s right wing. In May, The Intercept Brasil published alleged WhatsApp messages between Senator Flavio Bolsonaro, a presidential candidate, and Vorcaro.
The Intercept Brasil said the messages appeared to show Bolsonaro seeking financing from Vorcaro for a film about his father, former President Jair Bolsonaro. The elder Bolsonaro is in prison serving a 27-year sentence for trying to undermine Brazil’s democracy.
Flavio Bolsonaro denied wrongdoing and rejected any link to Vorcaro’s alleged fraud. In a social media post, he said he was a son seeking private sponsorship for a private film about his father’s life.
Bolsonaro is among the leading right-wing candidates seeking to defeat Lula, who is running for a fourth non-consecutive term. Recent polls have shown a tight contest, though a CNT/MDA survey released Tuesday put Lula ahead in a head-to-head matchup, with 49 percent support against 36.8 percent for Bolsonaro.
Bolsonaro also released 12 campaign priorities on Thursday. They included building five new maximum-security prisons, sending more forces to Brazil’s borders to curb irregular migration and lowering the age of criminal responsibility from 18 to 16.
He also said he would classify criminal networks as terrorist organizations, an approach associated with United States President Donald Trump, who has backed the Bolsonaro family. Bolsonaro said armed criminal groups such as Comando Vermelho and Primeiro Comando da Capital would be pursued by security forces.
Crime is expected to be one of the central issues in Brazil’s October election.
This story draws on original reporting from Al Jazeera.