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Justice

Brazil court releases R$ 2.4 million from Lula triplex sale to OAS

A federal judge in Brasília ordered the money from the 2018 auction of the Guarujá triplex paid to builder OAS, reviving debate over Operation Car Wash.

Seaside apartment building in Guarujá, Brazil, home of the triplex attributed to Lula by Operation Car Wash
Photo: Lula. Foto: Lula Oficial / CC BY-SA 4.0 (Wikimedia Commons)

A federal court in Brasília has ordered the release of R$ 2,428,275.78 (Brazilian reais) to the construction company OAS Empreendimentos. The money is the corrected value of the sale of the Guarujá triplex apartment that Operation Car Wash attributed to Brazilian President Luiz Inácio Lula da Silva. Judge Marcelo Gentil Monteiro, of the 12th Federal Criminal Court of the Federal District, issued the decision on Monday, November 9.

The funds had sat in a judicial account at Caixa Econômica Federal, a state-owned bank, since the property was auctioned in 2018. Almost eight years later, the destination of the money is now the builder, and the case is back in the political debate.

Why the money goes to OAS

According to the decision, OAS proved it owned the property at the time it was seized. The Federal Public Prosecutor's Office (MPF) also stated, in an opinion dated November 3, that there was no longer any interest in keeping the money frozen, nor any basis to order its forfeiture to the state.

In other words, the court found no remaining reason to hold the funds. The amount is the corrected balance of the account, and the transfer has already been ordered.

Background: the Car Wash triplex case

Operation Car Wash (Lava Jato) was Brazil's sweeping anti-corruption investigation. In it, prosecutors argued that the apartment, located in Guarujá, a coastal city in São Paulo state, and the renovations carried out by OAS were an undue advantage meant for Lula. The president has always denied owning the triplex. The property was auctioned in 2018, while his conviction was still in force.

In 2021, the Supreme Federal Court (STF), Brazil's highest court, confirmed the annulment of Lula's Car Wash convictions. The reason was that the 13th Federal Court of Curitiba did not have jurisdiction to try the cases. The convictions fell, but the money from the property stayed frozen for years, until now.

Why it matters

The key point is simple: the builder that investigators pointed to as the source of the benefit receives back the proceeds of the sale, with monetary correction. For those who followed Car Wash and the anti-corruption push that came with it, that is a hard outcome to accept. For the other side, the decision shows that the courts return what there is no longer any basis to retain.

What happens next depends on further legal developments. For now, the triplex, which seemed buried, is back in the headlines and is likely to reignite the discussion about Car Wash and its effects on Brazilian politics.

Translated and adapted from the original report by Visão da Direita (Portuguese). Read the original in Portuguese · Leer en español

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