Gerdau linked to minister who helped politicians approve measures to benefit steelmaker

Brazil-based steelmaker Gerdau was linked to a Brazilian minister who allegedly influenced policies that are said to have benefited the local steelmaker.

According to Brazilian newspaper Estadao, a report from public prosecutors in a corruption probe known as the Zelotes Operation said Dyogo Oliveira, the country’s interim planning minister, was part of a scheme that helped Gerdau pass measures with the aim of benefiting the steelmaker.

The minister reportedly talked with Jorge Gerdau, the steelmaker’s owner, about tax rules that were of interest of Gerdau.

The investigators said there’s evidence that thanks to Oliveira’s influence, Jorge Gerdau wrote himself amendments that were later passed at both the chamber of deputies and the federal senate.

Estadao cites the provisional measure MP 627, which was said to have been influenced by Jorge Gerdau. The provisional measure changed rules over taxes imposed on Brazilian companies with businesses abroad based on their profit.

Gerdau said it joined, in a legitimate way, discussions over double taxation of profits abroad along with other entities.