From Jersey Evening Post on 20 January 2006


Brazil mayor 'hid millions in Island'

By Carl Walker cwalker@jerseyeveningpost.com

A FORMER mayor of Sao Paulo has been accused of hiding up to half a billion pounds of illegally obtained money in Jersey.

Brazilian Paulo Maluf (74) is alleged to have deposited the money in the Island, via accounts in Geneva, between 1993 and 1996 while mayor of the city.

He is currently under investigation in Brazil for embezzling the money from various building projects, including the construction of a motorway and a mountain tunnel.

Yesterday the Royal Court refused a request from lawyers representing BVI companies - which are understood to be connected to the Maluf family - to block the release of any information to the investigating authorities in Brazil. They were trying to prevent the Attorney General, William Bailhache, from giving details of bank accounts and financial movements in the Island. BVI's legal team - Bailhache Labesse - were also prevented from seeing the contents of the letters, sent to Mr Bailhache from the Brazilian authorities, asking for assistance.

However, the court did grant a one-week 'stay' to allow the applicant's lawyers a chance to lodge an appeal against the decision. This means the Crown is unable to release any information to the Brazilian investigators until that date and could be delayed further if an appeal is to go ahead.



Published 20/01/06