Project Management Report from Belo Horizonte



By Manuel Carvalho da Silva Neto

International Correspondent

Minas Gerais, Brazil

Brazil lives a severe economic and political crisis. Started by investigations regarded corruption in PETROBRAS, the gigantic Brazilian oil company, and fueled by a Congress decision to start President Dilma Roussef impeachment process, political crisis is far from its end.

Every day new investigations accuse politicians, lobbyists, bankers, executives and company owners of deviation and irregular operations on an amount of hundreds of million dollars (probably billions). These accusations come from investigation, documents, evidence and a dozen “collaborations” from those involved and sometimes condemned. The things extrapolated from the PETROBRAS case and are spreading to a lot of companies, agencies and state banks.

Otherwise, because of her disastrous decisions, inability to talk and negotiate with Congress and a lot of illegal actions, Mrs. Roussef is accused of “responsibility crimes”, what, according to Brazilian Constitution is sufficient to start an Impeachment Process. The process is evolving according to constitutional and Supreme Court rules. First, a Committee of Representatives concluded that effectively Mrs. Roussef is responsible by some acts that are Responsibility Crimes. Then, in an historical session, most of the representatives agreed to admit the Impeachment Process. According to Constitution, the Senate is who must judge presidents in case of Impeachment.

First, a Senate Committee confirmed the Impeachment admissibility and started sessions where prosecution and defense are spending their best arguments and testimonies defending their points of views and interests. Finally this Committee will present its final conclusion.

Next August this phase will be concluded and this Committee report (pro or against Mrs. Roussef) could be voted on by the 81 senators. If two thirds or more of them agree with the impeachment then, Mr. Michel Temer, the vice president, automatically turns into President.

Today, as Mrs Roussef is suspended from her presidential charges, Mr. Temer is the interim President, facing a lot of problems, including accusations of leading a coup against Mrs. Roussef.

What is the problem? Simple, as the president and the things are interims confidence is very low. So, the economical agents are waiting for a definition. Business and investments are awaiting better days and actions by a legitimate government.

Last, but not least, Speaker from Representatives House is facing a lot of corruption accusations (a lot of them proved) and is out of its charges by a Supreme Court decision.

The Senate Speaker is also accused by a lot of people, but that seems without evidences.

Considering that political and economical issues come together, the situation is too bad for the Brazilian economy.

First Mrs. Roussef opted for a so called “New Economic Matrix”, which means, strong government expenses (not investments), prices artificially contained (including fuels and energy), reduction of taxes for certain items, no strong worries about inflation, government budget deficit,  forced reduction of interest rates, and a lot of other things. These things were increased in 2014 in order to reelect Mrs. Roussef. Consequences: high inflation, low growth and lack of confidence.


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About the Author

Manuel Carvalho da Silva Neto

Minas Gerais, Brazil

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Manuel Carvalho da Silva Neto, MSc, Mech. Engineer and PMP
is Fundação Dom Cabral Invited Professor and also Consultant. He is a seasoned professional with over 40 years of experience in Project Management, Process Management and Strategy. Manuel has managed or participated in more than four hundred huge projects across different fields including Steel, Mining, IT, Telecom, Food Processing, Government and Construction, to mention a few. He worked also in projects to implement PMO (Project Management Office) and Project Management Methodology. He has also strong skills in Leading People and Finance. He served as Minas Gerais State Undersecretary for Planning and Budget, from 2007 to 2008. Manuel can be contacted at [email protected].

To view other works by Manuel Carvalho da Silva Neto, visit his Author Showcase in the PM World Library at http://pmworldlibrary.net/authors/manuel-carvalho-da-silva-neto/