Paulo Cesar Farias - Corruption Scandal

Corruption Scandal

PC (as he was colloquially known) was a successful and famous campaign treasurer in Alagoas and a relatively unsuccessful businessman before associating himself with Collor in 1981. As campaign treasurer, PC typically collected much more than he spent on the campaign. The remainder (which was estimated to be over 50 million US dollars) was invested in his own businesses (such as an air taxi service) or hidden in anonymous overseas accounts.

Once Collor was elected, PC Farias masterminded the vast corruption scheme that rendered Collor's presidency a high-priced toll booth for government favors. He set up dummy companies to collect bribes, with 30 percent of the money going to him and 70 percent to Collor. As much as US $9 million went to PC's accounts between 1990 and 1992. As the corruption scandal emerged in 1992, it was revealed that a fraction of money from PC's businesses was sent directly to Collor to finance the president's personal expenditures, including household staff and extensive landscaping at his home in Brasília.

After Collor's impeachment, PC fled to the UK and Thailand, where he was arrested by the Interpol and extradited back to Brazil. In 1994 he was condemned to 7 years in prison. He was released in December 1995 by an indult from the Brazilian president Fernando Henrique Cardoso.