A coalition of 332 civil-society organizations, unions and social movements has signed a manifesto supporting labor prosecutor Margaret Matos de Carvalho, who faces a criminal complaint from Brazil’s Office of the Prosecutor General (PGR) over the alleged misuse of public funds. The case is before Brazil’s Superior Court of Justice (STJ), which handles criminal proceedings involving senior public officials.
The signatories include Prerrogativas, a group of lawyers and legal professionals; the Central Única dos Trabalhadores (CUT), Brazil’s largest trade-union federation; the Landless Rural Workers’ Movement (MST); the Pastoral Land Commission; the National Movement of Recyclable-Material Collectors; the World March of Women; and Terra de Direitos.
The Itaú Settlement
The case stems from a 2013 civil lawsuit brought by Brazil’s Labor Prosecution Service (MPT) against Itaú, one of the country’s largest banks. A lower court ordered the bank to pay R$20 million in collective moral damages—roughly US$3.7 million in approximate conversion—and directed that the money be distributed among 14 organizations selected by the judge.
Carvalho says she appealed because she considered it improper for the judge to choose the beneficiaries directly. According to her account, institutional rules require prosecutors to direct such funds to organizations registered with the MPT. Itaú also appealed the ruling.
A settlement reached in July 2016 reduced the payment to R$10 million, approximately US$1.8 million, and changed the recipients. The 14 organizations named by the judge were replaced by three beneficiaries selected by the MPT. One of them, the Institute for Waste and Citizenship (ILIX), received R$7 million.
Organizations that had appeared on the judge’s original list later filed a complaint against Carvalho with the Federal Prosecution Service (MPF). During its investigation, the MPF said ILIX had not properly accounted for the money it received. The PGR subsequently filed criminal charges against Carvalho and ILIX administrator Rejane Paredes.
Supporters’ Argument
The manifesto says Carvalho’s more than 30-year career enabled nearly 100 initiatives aligned with the Labor Prosecution Service’s strategic goals. It cites projects involving child-labor enforcement, the economic inclusion of recyclable-material collectors, assistance to asbestos victims and support for people experiencing homelessness.
Carvalho says she became a target of persecution after publicly criticizing Operation Car Wash (Lava Jato), the major anti-corruption investigation launched in 2014, and participating in the “Free Lula Vigil,” where she read a letter from prosecutors to then-former President Luiz Inácio Lula da Silva. She also says that investigations into her bank and tax records found no evidence of illicit enrichment or financial activity inconsistent with her salary.
This account is based on single-source reporting by Folha de S.Paulo. The allegations have not been established as criminal wrongdoing, and the source does not report a final ruling in the case.