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Brazil Senator Jaques Wagner Steps Down As Senate Government Leader Amid Banco Master Probe

Brazil Senator Jaques Wagner Steps Down As Senate Government Leader Amid Banco Master Probe
Brazil's Presidential Chief of Staff Jaques Wagner gestures before the meeting "Women in Defense of Democracy" at the Planalto Palace in Brasilia, Brazil, April 7, 2016. REUTERS/Adriano Machado

Senator Jaques Wagner resigned as the government's leader in the Federal Senate amid an expanding probe into Banco Master owner Daniel Vorcaro. Police searched properties linked to Wagner amid allegations of bribes, including an apartment and millions of reais, though he has not been charged. Wagner said he will focus on proving his innocence and supporting President Lula's reelection as well as his own Senate campaign. The probe has also implicated Senator Flavio Bolsonaro, who denies wrongdoing.

SAO PAULO/BRASILIA, June 24 — Senator Jaques Wagner, a longtime ally of President Luiz Inacio Lula da Silva, resigned on Wednesday as the government's leader in the Federal Senate after being implicated in an expanding corruption investigation tied to the now-defunct Banco Master.

Authorities revealed last week that Wagner is the subject of an inquiry into allegations that Banco Master owner Daniel Vorcaro used his wealth and connections to cultivate influence among prominent politicians. As part of the probe, police searched several properties linked to Wagner amid allegations that executives may have provided him and members of his family with benefits — including an apartment and millions of reais — in exchange for political influence.

Wagner announced his decision on X, saying: "I just had a great meeting with President Lula — a conversation among friends — and we decided, by mutual agreement, that I will step down from my leadership role in the Federal Senate." He added that his immediate priorities are to clear his name and to focus on supporting Lula's reelection campaign as well as his own bid for another Senate term.

Wagner, a former governor of Bahia and an influential figure in the Workers' Party, is the first member of Lula's inner circle directly linked to the Banco Master probe. The investigation has touched figures across Brazil's political spectrum, creating a fresh political headache for Lula as he seeks to preserve his coalition ahead of October's presidential election.

The probe has also implicated Senator Flavio Bolsonaro, who has acknowledged arranging funding from Vorcaro for a film about his father, former President Jair Bolsonaro, while denying any illegal conduct. Wagner has not been charged with a crime and has consistently denied wrongdoing; he initially said last week that he did not plan to step down and that Lula had called to offer support.

Political Impact

Wagner's resignation removes a key operator from Lula's Senate leadership at a politically sensitive moment. As a power broker from Bahia — a crucial electoral stronghold for the Workers' Party — his departure could complicate coalition management and campaigning in the run-up to October's vote. Investigations into alleged campaign financing and influence-peddling by wealthy businessmen continue to reverberate through Brasília and may reshape alliances in the weeks ahead.

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