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Brazil’s Lula appoints former mayor as finance minister

Photo: NELSON ALMEIDA / AFP

| By AFP |

Brazil’s president-elect Luiz Inacio Lula da Silva on Friday named former Sao Paulo mayor Fernando Haddad, viewed unfavorably by many in the business community, as his finance minister.

Lula da Silva, who narrowly defeated incumbent Jair Bolsonaro in October elections, unveiled ministers in the key posts of foreign affairs, justice, defense, and chief of staff.

However, all eyes were on his pick for finance minister, with markets nervous over the incoming government’s commitment to fiscal discipline and the inflation-hit economy in fragile recovery.

“(I chose) comrade Fernando Haddad as Minister of Finance,” Lula said during a press conference in the capital Brasilia.

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Haddad, 59, who served as education minister from 2005 to 2012, succeeds powerful liberal economy minister Paulo Guedes, an ally of far-right President Jair Bolsonaro.

After Lula’s new government takes office following his January 1 inauguration, the economy ministry will be dissolved and transformed into finance, industry and planning agencies.

When Haddad’s name started circulating for the role, markets reacted with unease, viewing him as too much on the left and fearing he would jeopardize the budgetary balance.

“He represents the heterodox economic policy” that Lula’s Workers’ Party (PT) defends, said Antonio Madeira of the MCM consultancy firm.

Madeira said that with Haddad in the finance ministry, he expects “an increase in spending” and “a more assertive state giving a significant role to public companies.”

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Despite some of the reluctance towards Haddad, the Sao Paulo Stock Exchange’s Ibovespa index was up Friday by 0.5% after the names of the future ministers were announced.

Lula also tapped Mauro Vieira as foreign minister. 

Vieira is a 71-year-old career diplomat who has already served as foreign minister as well as ambassador to Argentina, the United States and the United Nations.

He is currently serving as ambassador to Croatia, which on Friday knocked Brazil out of the World Cup.

For the justice ministry, Lula appointed Flavio Dino, a former governor of the northeastern state of Maranhao.

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Rui Costa, governor of the province of Bahia, was named to a ministry that falls between the roles of prime minister and chief of staff.

Jose Mucio Monteiro, a civilian, was named defense minister.

After appointing five white men to the key ministries, Lula promised that “in time, you will see more women than men here … as well as a number of Afro-Brazilians.”

“We will try and form a government in the image of Brazilian society.”

Lula, a former unionist who already served two terms as president between 2003 and 2010, said that he would announce the names of more ministers next week and he has “not yet decided the total number of ministers” he would have in his government.

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One of the most highly anticipated posts is that of the environmental minister, who will play a crucial role as Brazil seeks to tackle deforestation in the Amazon.

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International

Looting Spreads in Venezuela’s Hardest-Hit Areas After Deadly Earthquakes

Not even the wires were left behind at a small grocery store. Before the ground had even stopped shaking, looting and theft began in the areas hardest hit by the double earthquake that struck Venezuela.

Reports of robberies have multiplied in the coastal state of La Guaira, located near Caracas and now transformed into a landscape of collapsed buildings and debris.

Videos circulating on social media show groups of people removing boxes of household appliances from a damaged store. Other images show similar boxes being carried on top of vehicles and motorcycles.

Social media platforms have also been filled with accusations against police officers and military personnel who allegedly stole from homes and even from victims who died during the disaster.

A branch of a major pharmacy chain was looted, along with supermarkets and other businesses. Some residents have described the situation as “disaster tourism,” while others say the looting reflects hunger and desperation among people who lost everything in a country already facing a prolonged economic crisis.

“Is it fair that our own people turn against our own people?” said María Esther Bernal, 71, who rented commercial spaces to Chinese merchants, all of which were looted. “They left nothing behind, not even the wallpaper. They even took the cables,” she said.

“Next door, a man died. He was Chinese. People walked over his body while they looted the place. It was a supermarket,” she added.

An AFP journalist witnessed looting in La Guaira since Thursday, following the earthquakes.

Jenifer Mayora, 34, defended some of the actions, saying that “the things people took were because the owners of the stores allowed us to take them.”

However, she criticized the limited response from authorities. “I have been waiting for a mattress so my children can sleep,” she said.

Residents have expressed anger over what they describe as a slow and insufficient response from authorities after the double earthquake, which has left around 1,450 people dead and tens of thousands missing.

Communities are demanding not only faster rescue operations in La Guaira, but also stronger security measures and urgent assistance with food, water, and medicine.

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International

UN warns Venezuela earthquakes could affect up to 6.76 million people

Up to 6.76 million people could be affected by the devastating earthquakes that struck Venezuela on June 24, according to an assessment released by the International Organization for Migration (IOM), a United Nations agency.

The organization said the projections are based on available population data and damage assessments, and include up to two million people living in Caracas, the country’s capital.

The estimates highlight the potentially massive humanitarian impact of the disaster, the IOM warned.

Entire buildings collapsed in La Guaira, a coastal area north of Caracas, following the powerful twin earthquakes that reached magnitudes of 7.2 and 7.5 on Wednesday.

The national death toll has risen to 920, while rescue teams continue searching for people trapped beneath the rubble in coastal regions and other affected areas.

UN humanitarian chief Tom Fletcher told AFP on Friday that more than 50,000 people were reported missing.

The IOM also revealed that it worked with Microsoft’s artificial intelligence laboratory on an initial satellite mapping analysis, which showed that 31.5% of buildings in the town of Catia La Mar had suffered damage.

Authorities and international rescue teams continue operations as Venezuela faces one of its largest humanitarian emergencies in recent years.

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International

United Nations Coordinates Relief Efforts as Venezuela Death Toll Rises After Twin Quakes

United Nations Secretary-General António Guterres on Thursday expressed his condolences to the people of Venezuela following the two devastating earthquakes that struck the country and highlighted the ongoing coordination between UN humanitarian teams and interim President Delcy Rodríguez.

Speaking during the UN’s daily press briefing, spokesperson Stéphane Dujarric said Guterres was deeply saddened by the loss of life and widespread destruction caused by the disaster.

“The Secretary-General is deeply distressed by the loss of life and the widespread devastation caused by the earthquakes that struck Venezuela yesterday. He extends his heartfelt condolences to the families of the victims and wishes a speedy recovery to those injured,” Dujarric stated.

Venezuela was struck on Wednesday by two powerful earthquakes measuring 7.2 and 7.5 in magnitude. According to official figures, the disaster has left at least 164 people dead and 971 others injured.

Dujarric noted that preliminary reports indicate significant damage across several states, including the capital, Caracas. Numerous casualties have been reported, while other individuals remain trapped beneath collapsed structures or are still missing.

“Critical infrastructure has been damaged and essential services have been disrupted,” the spokesperson said.

The United Nations confirmed that its humanitarian team remains in close contact with interim President Delcy Rodríguez and other relevant authorities as emergency operations continue.

To support relief efforts, the UN has established a coordination center in Caracas and is assisting local authorities to ensure that humanitarian aid reaches affected communities as quickly and efficiently as possible.

Guterres also welcomed the expressions of solidarity and offers of assistance from countries around the world that responded following news of the disaster, underscoring the importance of international cooperation in addressing the humanitarian emergency.

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