Is this the end of the line for Brazilian President?
Updated: 09-Sep-2005
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• Brazilian President, Lula da Silva, is involved in corruption and bribery scandals that also implicate Portugal Telecom
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Throughout July and August, a series of damaging revelations over corruption and bribery have led to the resignation of several high ranking Brazilian government figures. These include Lula’s chief of staff, the president of the Workers Party, its treasurer and secretary general. Now, there are calls in certain spheres of Brazilian political life for the President himself to be impeached in the Brazilgate Scandal, if further leads go directly to his doorstep.
Earlier this month, the president of Portugal Telecom, Miguel Horta e Costa, denied to the press allegations from a Brazilian lawmaker that his company secretly financed political parties in Brazil. Horta e Costa has always maintained that Portugal Telecom officials have never met with members of two Brazilian parties. “Portugal Telecom has never financed, nor does it finance political parties in Brazil or any other country, and it is hearsay to imply something like that,” he said on the record.
He did, however, admit that they had met with an advertising executive in January, to discuss the possible acquisition by Portugal Telecom of Brazilian mobile telephone operator, Telemig, to add to its portfolio, which includes 50 per cent of Vivo, Brazil’s largest mobile phone company.
Brazilian lawyer Roberto Jefferson had alleged, before Brazil’s parliament, that the governing Workers Party and the coalition Brazilian Labour Party had either accepted or was seeking money from Portugal Telecom to pay off their debts. In parliament, the lawyer, who is a member of the Labour Party, claimed that both parties had contacts with Portugal Telecom, the Portuguese Banco Espírito Santo and former Portuguese Public Works Minister, António Mexia. Brazilian daily newspaper, Folha de São Paulo, has also alleged that negotiations between the accused groups centred on 35 million euros.
Just when the storm seemed to be blowing over, the Brazilian government has been rocked by further damaging allegations, including one that claimed a member of Lula’s government had received a Land Rover by way of a bribe from a private company.
Following these allegations, 22 Workers Party legislators declared their independence from the party, stating they were outraged by the bribery and alleged dishonest campaign funding. The series of financial scandals is said to involve secret offshore accounts, the arrest of politicians with suitcases of money and a financial dealer in prison, known as Barcelona Tony, who has threatened to reveal more shady double dealings.
Currently serving a 25-year prison term, the former financial dealer, whose real name is Antonio Claramunt, implicated the President of Brazil’s Central Bank, Henrique Meireilles, and Justice Minister, Márcio Bastos.
Silva, in his defence, has addressed the nation accusing Conservative elements of conspiring to have him overthrown. Later, he again went on television to apologise for any corruption carried out by either his government or party.
Last week, the beleaguered Brazilian President was locked in round table talks with his crisis cabinet of vice president, José Alencar, and seven ministers, to see what damage limitation could be done.
In the meantime, under Article 85 of the Brazilian Constitution, if the legal investigations underway into the allegations of corruption implicate the President, he is likely to face impeachment. A parliamentary enquiry has been set up to investigate these allegations and has already grilled Workers Party ex treasurer, Delúbio Soares, one of the central figures in the alleged Portugal Telecom scandal, who is expected to explain 10 plane trips to Portugal and supposed meetings with Portugal Telecom chiefs.
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