The weekly news magazine “Isto” produced a historic edition last week, for better and for worse. Its main story, “Central Bank president and director hide overseas assets from tax authorities,” on Wednesday led to the downfall of the director of monetary policy at the Central Bank, Luiz Augusto de Oliveira Candiota. Strangely, however, the magazine’s cover did not carry the exclusive story, but instead had one about Rio de Janeiro that looked like disguised advertising.
The Christ the Redeemer statue, sporting a helmet, workman’s tools, tie and an executive’s briefcase, illustrated the main story, “The Rio worker (despite opposite reputation),” Inside, there were 19 pages of text, without bylines and no hint of critical journalism, and two pages of advertising by Rio Industrial Social Service, which is part of the Industrial Federation of Rio de Janeiro state (Firjan) system.
The material began with an interview with Rio Gov. Rosinha Matheus of the centrist Brazilian Democratic Movement Party, followed by another one with Eduardo Gouveia Vieira, president of Firjan, and sought to demonstrate the “economic vigor” in the state. There was no reference to the problem of criminality, not a single line about social problems, and there was no mention about companies which have left the state.
An edition of this type of laudatory material, with no commitment to journalism, would not be a problem if it was labeled as an advertisement and identified who paid for it. In this case, Rio residents or a Firjan member could feel offended and complain, but the magazine and the advertiser would at least be honest with readers. And, in that case, it would never have been on the front page of a news magazine.
I sought to contact managers at “Isto”, Firjan and the state government. I wanted to know if the material was paid for and by whom.
The information secretary for communications, Ricardo Bruno, responsible for the publicity budget for the state government, said that the state had not paid for the material in “Isto”. “They sought us for information to do an economic X-ray of Rio that would inaugurate a series of X-rays that they will do in various states.” The top managers at “Isto” and Firjan did not want to comment on the topic.
This is a public matter, and I have already dealt with this topic in some columns, that journalistic organizations are experiencing a serious debt crisis. It is also well known that competition has gotten even more intense with the arrival of new media outlets and because advertising budgets are growing very slowly.
This means that newspapers, radio stations, magazines and TV stations are obliged to seek “creative” ways to attract advertisers. It is a difficult period, and one of the principles of journalistic independence, what separates newsrooms from advertising, is dangerously affronted.
But no crisis or pretext could serve as an excuse to break this principle. Media companies, if they want to maintain their credibility, should be conscious that readers evaluate how they conduct themselves, mainly during the most difficult times.
Principles of transparency
The problem does not occur only in Brazil. This week, six organizations around the world simultaneously released in London and Berlin a statement about transparency in the media, a group of principles with the objective of “ending payment for press coverage.” One of the principles has already been consecrated in various codes, manuals and conventions, but there is nothing wrong in reaffirming them: “Material published for payment should be clearly identified as advertising, sponsored or promotion.”
The signatory entities are the International Press Institute, the International Federation of Journalists, Transparency International, the Global Alliance for Public Relations and Communication Management, the Institute for Public Relations, and the International Public Relations Association.
In Brazil, the principles are being released by Transparency Brazil (www.transparencia.org.br), which seeks the support of other organizations. Information about the declaration and the organizations that subscribe to it can be found on Transparency International’s site (www.transparency.org). The principles are:
1 – News copy should be published as a result of journalistic decisions made by editors and reporters and not as the result of any payment in money, services, products or any other form of favoritism.
2 – Material published for payment should be clearly identified as publicity, sponsorship or promotion.
3 – No journalist or media representative should ever suggest that journalistic material be published for a motive other than its news value.
4 – When samples or loans of products or services are necessary because a journalist gives an objective opinion, the time of use should be defined in advance and the products on loan should be returned afterward.
5 – Media organizations should institute written rules concerning the receipt of gifts or products and services offered with discounts, and journalists should be instructed to sign copies of these rules.
Folha performed poorly
Folha performed poorly with the main topic of the week, the scoop by “Isto”, which ended up causing the downfall of the director of monetary policy at the Central Bank, Luiz Augusto Candiota.
The magazine began to circulate on Friday, July 23, with the information that the Central Bank president, Henrique Meirelles, and Candiota “hid overseas assets from tax authorities.” According to the magazine, the two are under investigation for suspicion of tax evasion and fraud.
That same Friday, at night, Meirelles and Candiota released statements with explanations. During the weekend, facing repercussions, Meirelles appointed Rodrigo Azevedo to replace Candiota, but did not make the decision public. The “Isto” story, meanwhile, had an immediate effect inside the government.
Folha ignored the topic until Tuesday, when it published a brief story, without much prominence or new information: “Suspected of tax evasion, Meirelles under investigation.”
Only on Thursday, when Candiota’s departure was assured the previous night, did Folha enter the topic for real. But it had already been crushed by the facts. The newspaper carried relevant information, that Rodrigo Azevedo, appointed by Meirelles on Sunday, wrote, while still chief economist for CSFB Garantia Bank, the bank’s bulletin which circulated Monday that projected Candiota’s departure, signifying the use of privileged information. The bank explained later that the bulletin was written before the appointment.
This coverage seems to have a rule: Those who run behind will have a hard time getting in the game. The day before yesterday, when newspapers still reverberated Candiota’s departure, “Isto” hit the newsstands with exclusive new information and bet on the fall of the Central Bank president: “Henrique Meirelles, president of the Central Bank of Brazil through the closing of this edition – What he has not explained.” The other headline was equally strong: “Incredible! Cssio Casseb, president of Banco do Brasil, like Candiota, sent money overseas and did not declare it.”
Newspapers, once more, had to play catch-up.
