President Luiz Inácio Lula da Silva has privately told allies that Supreme Court Justice Dias Toffoli should resign from the court amid escalating investigations into the Banco Master scandal, marking an extraordinary moment of executive pressure on Brazil's highest judicial institution.
The president's frustration, reported by Folha de S.Paulo, comes as federal investigators describe Toffoli's legal position as "untenable" following revelations about his alleged connections to irregular banking operations involving billions of reais.
In Brazil, as across Latin America's giant, continental scale creates both opportunity and governance challenges. But the Banco Master case reveals something more troubling: potential corruption at the apex of the institution designed to police it.
Federal investigators told other Supreme Court justices that the evidence against Toffoli will likely worsen as the probe continues, according to G1's Andréia Sadi. The warning has created deep tension within a court already fractured by political polarization.
The scandal centers on Banco Master, a mid-sized institution that allegedly facilitated money laundering and tax evasion schemes. Investigators are examining whether Toffoli used his position to influence regulatory decisions benefiting the bank and its clients.
Lula's public irritation creates a constitutional dilemma. As president, he appointed Toffoli to the court in 2009 during his second term. Now calling for his resignation appears to undermine judicial independence, yet defending a potentially corrupt justice erodes institutional credibility.
"This is the worst possible situation for Brazilian democracy," said Thiago Amparo, a constitutional law professor at Fundação Getúlio Vargas. "If the president pressures the court, he's authoritarian. If he ignores evidence of corruption, he's complicit. There's no good option."
The Workers' Party, Lula's political base, faces particular embarrassment. The party built its modern identity on anti-corruption crusades against previous governments. Having a PT-appointed justice at the center of a major financial scandal undermines decades of political positioning.
Opposition politicians, particularly from the right-wing Partido Liberal, have eagerly seized on the scandal. Former President Jair Bolsonaro's allies are demanding Toffoli's impeachment, though their own record on judicial integrity remains controversial.
The Supreme Court itself has remained conspicuously silent. None of Toffoli's colleagues have publicly commented on the investigations, creating what observers call a "cone of silence" around the matter.
Brazilian law provides limited mechanisms for removing Supreme Court justices. Impeachment requires a two-thirds Senate vote for "crimes of responsibility," but the definition remains vague. No justice has ever been successfully impeached in Brazilian history.
Toffoli has denied any wrongdoing and has not commented on calls for his resignation. His lawyer released a statement calling the allegations "politically motivated" and promising to cooperate with investigations.
The scandal arrives as Brazil attempts to position itself as a leader in regional governance and BRICS institutional development. Having a Supreme Court justice under investigation for corruption complicates that narrative considerably.
For Lula, the crisis represents a test of his commitment to institutional integrity versus political loyalty. The president's allies note that calling for Toffoli's resignation demonstrates his willingness to sacrifice political friends for clean government.
Critics argue the private comments—rather than public condemnation—show Lula is trying to manage appearances while avoiding direct confrontation with the Supreme Court. Either way, the Banco Master scandal has become a defining test of Brazilian institutional strength.
