Economist.com Cities Guide: Sao Paulo Briefing - July 2005

News this month

Bribery trouble

A bribery scandal has damaged the reputation of Brazil’s left-leaning president, Luiz Inácio Lula da Silva, after it forced the resignation of his right-hand man, José Dirceu, and two top officials in the governing Workers’ Party (PT). In May, Veja, a weekly magazine, published videotape transcripts of a post-office official pocketing a bribe and claiming to belong to a corrupt network headed by Roberto Jefferson, then leader of the government-allied Brazilian Labour Party (PTB). Mr Jefferson responded by accusing the PT of paying a monthly allowance to certain congressmen in return for their votes. He spared Lula himself, but named Mr Dirceu and other top PT officials.

Evidence corroborating Mr Jefferson’s charges has piled up. Much attention has concentrated on Marcos Valério de Souza, the head of two advertising companies, whom Mr Jefferson accused of distributing the monthly allowances. The PT was further damaged by revelations that Mr de Souza guaranteed a loan to the party and helped repay it, contradicting the PT's claim that they had no financial connection with him. Speculation is stirring that Lula will not run for re-election in 2006.

Prison revolt

In mid-June, a group of prisoners at a jail in the far west of São Paulo state staged a grisly rebellion, beheading five inmates and taking 20 guards hostage. The revolt in the town of Presidente Venceslau seems to have been organised by the Primeiro Comando da Capital (PCC), São Paulo’s biggest criminal outfit. But the rebels made no demands and it is not clear what their motives were.

One theory is that factions within the PCC, whose members comprise the majority of the prisoners in Presidente Venceslau, were battling for control of the drug trade on the São Paulo coast. Another is that the PCC attacked ex-members who refused to make monthly payments. The rebellion ended after 30 hours when police stormed the prison and freed the remaining hostages. This was one of three such rebellions that took place across Brazil in June.

Not small beer

Federal police have arrested the owners of Schincariol, Brazil’s second-largest brewery, as part of a huge investigation into tax evasion. Two sons of Schincariol’s founder, who was murdered in 2003, were arrested, along with three other family members. They are accused of tax evasion, money laundering and bribery of public officials.

Schincariol has long been suspected of dodging taxes. Brazilian businesses complain that the country's crushing tax burden encourages evasion. Tax authorities believe the company has underpaid by at least 1 billion reais ($420m) over the past five years. Schincariol, the largest employer in Itu, a town near São Paulo city, claims the charges are inspired by jealous competitors and has accused the police of using “violent and sensational” tactics in the arrests (they threatened to use explosives to enter the home of Gilberto Schincariol, the brewer’s vice-president). After temporary detention, the Schincariols were released. Prosecutors have delayed filing formal charges in order to take account of new evidence.

Drop in murder rate

The number of murders in São Paulo dropped 40% between 1999 and 2004, according to a study unveiled by Geraldo Alckmin, the state governor. Last year 3,945 people were murdered in the city, compared with 6,638 in 1999, marking a drop from a record 64.2 murders per 100,000 people to 36.9. Mr Alckmin, who may run for Brazil’s presidency next year, compared São Paulo’s safety improvement with that of New York after its “zero tolerance” policy towards crime.

Jardim Ângela, a São Paulo favela (slum) named by UNESCO as the world’s most violent in 1996, has seen the number of murders drop by 73% between the first half of 2001 and the first half of this year. Criminologists attribute the improvement to better community policing and a partnership between police and NGOs, as locals become less tolerant of and more resistant to crime. Despite the progress, however, São Paulo’s murder rate remains nearly 20 times that of the European Union.

Farewell to Santos?

Despite the plaintive cries of fans, Robinho, the supremely talented footballer who plays for Santos Football Club, is determined to go. He has announced his intention to play for Real Madrid in Spain from next season, despite a contract with Santos that does not expire until 2008. Notwithstanding Real Madrid’s $25m offer, Santos’s president, Marcelo Teixeira, is holding out for the $50m fee stipulated in the player’s contract. Robinho, whose mother was kidnapped last year, has threatened to appeal to FIFA, football’s governing body. Santos is the former team of Pelé, a Brazilian football legend, and there has been talk of a government-financed scheme to keep Robinho in Brazil.

Catch if you can

July 2005

Campos do Jardão's 36th International Winter Festival

July 9th-31st 2005

In this small city, 184 kilometres from São Paulo, winter brings fondues, mock-Alpine ambience and a sterling classical music festival. Directed by Roberto Minczuk, this year’s festival is themed “Music from the Americas”. The big draws will be Kurt Masur, the London Philharmonic's principal conductor, the Beaux Arts Trio, and Antonio Meneses, a Brazilian cellist.

The composers featured include Copland, Gershwin, Bernstein, Heitor Villa-Lobos, Carlos Gomes, Cláudio Santoro, Francisco Mignone, Alberto Ginastera and Astor Piazzolla. The festival, which bears similarities with Tanglewood in America, has 44 concerts in three weeks including master classes, opera selections, chamber music recitals and performances by the festival youth orchestra. Events take place in Campos de Jordão's main concert hall and five other venues.
For more information see the festival's website. Tel: +55 (11) 6846-6000. Tickets: 10-70 reais, available on Ticketmaster's website.

More from the Sao Paulo cultural calendar