A Scandal Is Brewing In Brazil That Could Change The Outcome Of The Election

• 14.09.2026, 16:29

Brazilian President Lula da Silva has come under fire.

Brazilian President Luiz Inácio Lula da Silva, leader of the left-wing “Workers’ Party,” had expected to head into the October 4 election relatively untroubled, but the scandal surrounding the bankrupt Banco Master could seriously change the situation, writes The Wall Street Journal.

Lula’s main rival is considered to be Flavio Bolsonaro, the son of former President Jair Bolsonaro and a representative of the right-wing camp. It is expected that none of the candidates will secure more than 50% of the vote in the first round. At the same time, the latest polls ahead of the second round show virtually equal results.

Banco Master has already become a problem for Flávio Bolsonaro himself. In May, it emerged that he had asked the bank’s CEO Daniel Vorkaro for money to fund a film about his father. Bolsonaro denies any wrongdoing, and now Lula himself has come under fire.

The collapse of Banco Master has caused serious damage to the state-owned Banco de Brasília, pension funds, and the deposit insurance system. Authorities are trying to determine why regulators did not intervene sooner.

Particular attention has been drawn to Vorkaro’s ties to Supreme Court Justice Alexandre de Moraes. According to a report released by the police, shortly before his arrest, the banker asked the judge to help him avoid prosecution and inquired whether he should leave the country.

De Moraes’s wife’s contract with Banco Master raises even more questions. Viviane Barzi de Moraes received approximately $25 million for three years of legal consulting services. She denies attempting to use her husband’s influence.

“Brazilians, tired of corruption, can draw their own conclusions and express them at the polls,” the author writes.

Weak economic growth and a new corruption scandal are creating serious problems for Lula ahead of the election.