Brazil's Supreme Court Bans Corporate Donations to Political Parties and Candidates

09/18/2015 - 09h07

In a decision that will have strong impact on electoral disputes, the Supreme Federal Court (STF) ruled 8-3 to forbid corporate donations to political parties and candidates.

Companies currently are the biggest campaign financiers. The Supreme Court's resolution will be valid for 2016 municipal elections.

The decision should be used by President Dilma Rousseff to overturn another law approved by Congress last week, which allows corporate donations of up to US$ 5.13 million (R$ 20 million).

Amid political crisis, Rousseff is under the pressure of her allies to approve the law and a veto could complicate even further the President's relationship with Congress. She has until September 30 to evaluate the project.

If overridden, the new law will be discussed again in the Supreme Court. Folha has learnt with Ministers that in this case it will be considered unconstitutional.

An alternative to allow corporate donations would be to approve a Proposal of Amendment to the Constitution (PEC) to resume the current system, which allows corporate donations of up to 2% of the gross sales of the year preceding the election.

In the 2014 elections, more than 70% of the campaigns were financed by companies.

Ministers of the Supreme Court also decided to keep the current term that allows individuals to donate up to 10% of their income to parties and candidates.

Translated by JULIANA CALDERARI

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	Pedro Ladeira/Folhapress
	The Supreme Court ruled 8-3 to forbid corporate donations to political parties and candidates