Jamil Chad Charged, Bolsonaro withholds payment to The Hague and world’s biggest debtor 12/07/2022 19:30

President Jair Bolsonaro failed to pay Brazil’s annual contribution to the International Criminal Court (ICC) in The Hague and is now Brazil’s largest debtor. The data was collected by the Foreign Affairs Technical Group, which works on the transition team formed by president-elect Luiz Inácio Lula da Silva.

This Wednesday, the Foreign Affairs Technical Group announced that it has decided to “raise alert on the impact of Brazil’s non-payment of overdue contributions to various international organisations.”

As estimated by UOL last week, Brazil’s debts with international organizations amount to about 5.5 billion reals. If part of this amount is not paid, Brazil will lose the right to vote in several organizations. This is not a voluntary transfer of resources, but a mandatory contribution of each country.

In the report sought two weeks ago, neither the Ministry of Economy nor Itamaraty specified when the debts would be paid. “Despite the efforts of the current administration of the Ministry of Foreign Affairs, the Ministry of Economy has recently signaled that it will not make the minimum payments of sanctions (totaling 1 billion reais), including the loss of votes in the governance bodies, “, the Foreign Affairs Working Group stated in a note.

In the case of The Hague, it is noteworthy that Brazil represents 48.44% of the total owed, which creates serious liquidity problems for the organization.

“Brazil’s total debt of EUR 22,089,327. Payment of the 2020 obligation (EUR 7,608,146) and the 2021 contribution of approximately EUR 10,000,000 by December 2022 will prevent the loss of votes in Brazil’s Assembly of States Parties and the Board of Directors. “Directors” points to the transition team.

In The Hague, Bolsonaro has been accused of genocide, crimes against humanity and serious human rights violations at least six times, for indigenous peoples’ handling of the situation and epidemic. The court’s counsel is still considering whether there are grounds to accept such charges.

The prominence of the case against the Brazilian president in the body even led the transitional government to suspend the appointment of the Hague ambassador appointed by Bolsonaro. The mission, which was never a priority within Itamaraty, became one of the key locations by the new government.

The gesture was interpreted as a sign that the lawsuit against Bolsonaro will carry weight in the new Brazilian diplomacy.

Other assets

According to the study, Brazil has emergency debt to 43 institutions. Some of these are detailed by the transition group:

1) United Nations (UN)

Today, Brazil owes 302,157,436.83 million USD to the UN system. According to the UN Secretariat’s letter dated 11/17, Brazil will lose its right to vote in the General Assembly in 2023 unless Brazil pays at least $84,470,857 by 31 December 2022. their contribution to the ordinary budget of 2022 in addition to all previous years. The country’s eventual inclusion in the list of member states subject to the loss of votes to be distributed in early January will have unpredictable consequences on the image of Brazil, one of the founding members of the organization, which will continue to occupy another country in 2023. -Permanent seat in safety advice.

2) International Atomic Energy Agency (IAEA)

Brazil regained its voting rights, which it lost at the end of 2021 due to accumulated debts, with payments made in February. If you do not pay the remaining EUR 10,458,555 from the 2020 contribution and at least part of the 2021 debt, the country will not be able to vote again on 1 January 2023. It corresponds to the IAEA’s (2020, 2021 and 2022) 28,920,585 Euros and 3,094,542 US dollars.

3) Food and Agriculture Organization of the United Nations (FAO)

Brazil regained its voting rights, which it lost due to outstanding debt at the end of 2021, last February by paying off the remainder of its 2019 debt. If it does not pay its 2020 debt ($7,598,041.18 and €5,550,357.14) and at least part of its 2021 contribution by 31 December 2022, the country could still remain without a vote. FAO rules provide for the automatic resignation of FAO Council mandate, a position that Brazil has been uninterruptedly a part of since 1956.

4) ILO

Brazil accumulates a total debt of CHF 32,545,399 (Swiss francs) in contributions to the ILO’s regular budget for the period 2020-2022. Protection of Brazil’s right to vote in the ILO as of January 1, 2023 will be subject to full payment of the portion for 2020 (CHF 9,570,856) and partial payment of the portion for 2021 (1,657,987 CHF).

5) United Nations Educational, Scientific and Cultural Organization (UNESCO)

For the past few years, Brazil has been accumulating debts to UNESCO. The country is the 108th largest contributor, responsible for 2.60% of the budget and currently the 2nd largest debtor. Brazil’s debt to UNESCO is 12,016,677 USD and 2,838,756 EUR. Brazil holds the Presidency of the General Conference of UNESCO in 2022-2023. According to the rules of the organization, if Brazil maintains a delay of more than two years from January 1, 2023, it will lose its right to apply for re-election to the Executive Board, the main decision-making body of the organization. The country that Brazil has never left for reelection since the organization was founded in 1946. He will also forfeit his right to vote at the 43rd General Conference to be held in November 2023, under the presidency of Brazil. . To avoid the aforementioned sanctions and restrictions on the country, Brazil needs to repay $8,332,959 of its 2021 debt and at least part of its 2022 contribution by the end of this year.

6) World Trade Organization (WTO)

Although a substantial part of the 2021 contribution was paid on May 27, the possibility of imposing administrative sanctions against Brazil, including the impossibility of appointing a representative to chair the WTO Bodies, is still not ruled out. To avoid this scenario, the country must pay the remainder of 2021 (CHF 947,540.98) and at least part of its 2022 contribution by 31 December.

7) International Organization for Migration (IOM)

Brazil is currently the largest indebted country to the Organization, with outstanding contributions of CHF 6,031,081 (Swiss francs), 36% of the total. The country was included in the list of indebted Member States in June 2022, as the default of the Brazilian government exceeded the debts of the previous two years. Brazil’s loss of voting rights in the establishment should take effect in July 2023. To avoid such a scenario, the country would need to cover $2,735,715 of delayed contributions for fiscal years 2019, 2020 and partially 2021.

8) World Intellectual Property Organization (WIPO)

The sums owed by Brazil are in two installments of CHF 91,158 (Swiss Franc), corresponding to the years 2021 and 2022. The delay in paying the mandatory contributions will tarnish Brazil’s image and could result in the loss of voting rights on January 1, 2023. Brazil is unable, at least in part, to meet its 2021 obligations until 31 December this year.

9) Convention on Biological Diversity (CBD)

In the event that the country has outstanding contributions for two or more years, the Conference of the Parties and its subsidiary bodies to the Convention will be barred from participating in the Governing Boards. Brazil, at least, for years before fiscal year 2022, with a total of $373,577.88, of $206,181.59 (CDB/2021 liabilities), $122,235.29 (Cartagena/2021 liabilities 2020 and 2021) and US$ fulfill its assigned obligations. 45.161 (obligations Nagoya/2021). Timely payment to the CBD and its Protocols will allow Brazil to be elected to the Board of Directors by a decision at COP-15, which will be held December 7-19.

10) World Health Organization (WHO)

When the installments that Brazil owes to WHO between 2020-2022 are added, the total outstanding amount reaches 18,592,862 USD and 20,826,478 CHF (Swiss Francs). When calculating the contributions payable in 2020, 2021 and 2022, Brazil’s contribution was the 8th largest in the regular budget, accounting for 2,948% of the total assessed contributions to WHO. Under the organization’s rules, voting rights of a country that owes an amount equal to or greater than the total contribution due for the previous two years will be suspended – which could happen if current conditions continue. Brazil, in May 2023, the 76th World Assembly is also in Saúde. Amounts referring to 2021 (US$ 7,052,585 and CHF 7,200,684), albeit partial).

In a working document to be published for the 152nd session of the Council (30.1.2023 – 2.7.2023), Brazil can be clearly mentioned as a late payment country. In previous years, the deadline adopted by the secretariat to assess the agency’s financial condition was 31 December.