President Luiz Inácio Lula da Silva on Wednesday (9) called for the complete lifting of judicial secrecy over the investigations known as the Master case and demanded "more transparency and not selective leaks" in the proceedings. In a post on X, the president said Brazil needs "explanations and immediate measures" to confront what he described as an institutional crisis that has taken hold of the judiciary, and called the alleged scheme "the largest financial crime in Brazil's history".
"It is urgent to fully lift the secrecy of the investigations of everyone involved in the Master case, whoever it may be, no matter whom it hurts. Brazil needs to know the truth," Lula wrote. According to news outlet G1, he cited the release of information from Operation Spoofing, a probe once led by then Supreme Court justice Ricardo Lewandowski, as an example of transparency. Folha de S.Paulo reports that the president complained of "selective leaks that impact the electoral race". Lula is running for reelection and seeking a fourth term.
The Master case investigates an alleged scheme to artificially inflate the value of the now defunct Banco Master through assets and credit portfolios with no real backing. According to the Federal Police, the structure allowed the bank to appear financially solid, raise billions of reais from investors and carry out operations without matching guarantees. Among those under investigation is Daniel Vorcaro, the bank's former controlling owner.
How the crisis reached the Supreme Court
According to G1, Lula's statement comes amid the worst internal crisis in years at the Supreme Federal Court (STF), Brazil's highest court, triggered by disputes over the Master case and the work of the Federal Police. Timeline:
- Justice André Mendonça raised questions about the relationship between fellow justice Alexandre de Moraes and Vorcaro, who is under investigation.
- Moraes responded by ordering an inquiry into Mendonça's conduct in the case.
- Last week, court secrecy was lifted from Federal Police reports exposing the clash between the two justices.
- At the request of the Novo party, Mendonça ordered the preventive removal of Federal Police director-general Andrei Rodrigues and intelligence director Leandro Almada, and suspended intelligence reports.
- The Attorney General's Office (AGU), the federal government's legal counsel, appealed to the court, arguing the decision intruded on executive powers.
- On Wednesday morning, Justice Flávio Dino suspended the removals and ordered both officers reinstated.
In the ruling that reinstated the officers, Dino said political parties lack standing to seek precautionary measures in criminal proceedings and argued that removals of this scale belong to the full bench, not to a single justice. He also said the measure was hurting urgent investigative steps under his responsibility, including a probe into congressional budget amendments tied to the film "Dark Horse". The AGU argues that Mendonça's order violated the constitutional prerogative of the president over the police command.
Hours after Dino's injunction, Chief Justice Edson Fachin canceled the full bench session scheduled for 2 p.m. on Wednesday. The session, the first since the crisis escalated, was set to take up Brazil's internet framework law (Marco Civil da Internet) and the investigative powers of the Federal Police, and ministers were expected to address the standoff. No reason for the cancellation was given. The next step now belongs to Mendonça: Fachin has opened a 72-hour window for the justice to respond to the AGU appeal, a deadline still running. No new date has been announced for the court's session.