Explained: All about Bolsonaro, and the boxes of jewels at the heart of a probe

Brazil's former president Jair Bolsonaro has been in a soup over jewels he received from Saudi Arabia some time back. He is alleged to have tried to illegally import millions of dollars worth of jewellery given to him and his wife. His lawyers said Monday that he will hand over to authorities the jewels in question. Local media reported about the development of the jewels that had entered the country without being declared to tax authorities.

Multiple investigations were launched into the matter, making things tough for Bolsonaro who is currently in Florida, US and is expected to return soon to Brazil. Bolsonaro has been in the US since just before his leftist successor, Luiz Inacio Lula da Silva, took office on January 1. The matter has garnered interest from various quarters and has been puzzling for others. Here is all you need to know about the case.

Where did the jewels come from?

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Bento Albuquerque, Bolsonaro's then-mines and energy minister, explained what happened. He says that an "envoy" from the Saudi government gave his delegation two packages just as an official visit to Saudi Arabia in October 2021 ended.

Upon returning to Brazil, customs inspectors found that an aide to Albuquerque was carrying an "undeclared" box in his backpack, according to the newspaper Estado de Sao Paulo, the first to report the story. Upon search, the box was found to be full of diamonds and was seized for failure to pay the required import duty.

Also Read |Bolsonaro will hand over undeclared jewels given to him by Saudis: Report

The paper reported that Bolsonaro made several efforts to retrieve the jewels. But his administration failed a total of at least eight times to convince customs inspectors to release the jewels. This went on right until third-to-last day of his term when his administration dispatched a navy officer to the Sao Paulo airport to pressure officials to hand over the diamonds.

Reports later emerged that a second package escaped detection and was given to Bolsonaro, who kept it for himself. Bolsonaro has denied doing anything wrong in the matter and says he has not done anything illegal.

What was in the boxes?

The two boxes given to Bolsonaro were from Swiss luxury house Chopard. The one which Albuquerque was filmed telling customs officials was for former first lady Michelle Bolsonaro. It contained a necklace, ring, watch and pair of earrings, with the items being valued at three million euros ($3.2 million).

The second box held a men's watch, ring, pair of cufflinks, pen and prayer-bead set, estimated to be worth at least $75,000. Bolsonaro withheld these items saying they were personal gifts.

About the investigation

Brazilian law states that anyone entering the country with goods worth more than $1,000 is required to declare the items. The owner then needs to pay an import duty of 50 per cent on the excess value over $1,000. Since in this case the items weren't declared, a heavy fine was also imposed.

One possibility was that the jewels entered Brazil tax-free in the name of official gifts to the nation. However, in that case, they would have belonged to the presidential palace collection, not the first family, according to legal experts.

"Government officials are absolutely forbidden to accept high-value gifts for themselves -- even the president," Isac Falcao, head of Sindifisco, the union representing tax authority employees, told AFP.

Investigations were opened into the matter by both the federal police and tax authority.

Another probe by the Senate transparency committee is looking into whether the jewels were linked to the March 2021 sale of an oil refinery in northeastern Brazil to the United Arab Emirates sovereign investment fund, Mubadala, for $1.65 billion.

Where are the jewels?

The first set of jewels that were seized immediately upon arrival "is in a safe at Guarulhos airport" in Sao Paulo. According to tax authorities, the deadline to regularise their legal situation expired in July 2022, which means they can now be auctioned off, donated, added to the national collection or destroyed.

Reports emerged Monday that Bolsonaro had agreed to hand the second set of jewels over to the authorities pending investigation.

What happens next?

A judge on Brazil's Federal Court of Accounts (TCU) had ordered Bolsonaro and Albuquerque last week to give depositions to clarify whether the jewels were personal presents or gifts to the nation and the reason for not properly declaring them.

Local media reports suggest that Albuquerque told investigators Tuesday he did not know what was in the packages but considered them official gifts to the nation. A date for Bolsonaro's deposition is yet to be announced.

Meanwhile, the matter has caused sparks in Saudi Arabia. There has also been no official reaction from Crown Prince Mohammed bin Salman. However, it continues to make headlines in Brazil. It also acts as a possible hurdle in Bolsonaro's return to Brazil to lead the opposition against Lula.

(With inputs from agencies)