Tarcísio and Haddad Escalate Fight Over São Paulo’s Finances and Policing

Overview

• Tarcísio, who spoke Tuesday at a government event and press briefing, said Haddad has no standing to judge São Paulo’s budget and declared the ex-minister “broke Brazil.”
• He said Haddad’s time at the Finance Ministry raised Brazil’s debt-to-GDP ratio, swelled household debt, set a record for corporate recoveries in court, and kept real interest rates among the world’s highest.
• Haddad countered that the state avoided a deeper crunch only because of help from President Lula and asset sales like Sabesp, and he argued the vaunted cash balance shrinks to about R$5.4 billion after obligations.
• He also said Tarcísio lost the Civil Police’s trust and that former security secretary Guilherme Derrite disrupted Military Police promotions, which he argues hurt morale and stalled careers in the ranks.
• The clash is shaping the October governor’s race, with the Assembly’s R$15 billion loan approval and a late-April poll showing Tarcísio ahead forming the backdrop for dueling claims about management and results.