Brazil’s Congress hunts bribery scandal culprits

BRASILIA – The former right-hand man to Brazil’s president is among the first lawmakers to face possible expulsion from Congress in a bribery scandal sweeping through the country’s political parties.

A Congressional ethics council last week began hearings against Jose Dirceu and two other legislators who face corruption allegations that could take down dozens of lawmakers and paralyse Congress for months to come. “I’m not going to resign, I’m quite calm, I committed no crime,” Dirceu told reporters as the ethics council began to consider whether to ban him from Congress for eight years after allegations that he masterminded a bribes-for-votes scheme.The accusations that President Luiz Inacio Lula da Silva’s ruling Workers Party (PT) used public funds to bribe allied lawmakers has brought on the worst political scandal in a decade in Latin America’s largest country.At least 18 lawmakers face possible expulsion from Congress and many more may be brought in front of the ethics council as the scandal sweeps into opposition party ranks.Dirceu, once seen as the power behind the throne, stepped down as Lula’s cabinet chief in June.Four PT leaders have also resigned after being accused of running the scheme.The government’s Congressional coalition has crumbled after many party leaders were accused of taking bribes.Investors fear Lula may lose control of tight fiscal controls.The Senate on Wednesday passed an opposition proposal to increase the minimum monthly wage to 384 reais (about N$1 092), rather than the government’s 300 reais goal.The lower house must now vote on the opposition proposal – which would increase social security costs by 12 billion reais if approved, according to the government.Lula has denied knowledge of illegal funding or bribes and said allegations he let his party embezzle cash are a plot by Brazil’s political and media elite to block his re-election.The PT has admitted taking undeclared loans from publicist Marcos Valerio but says the money was used for illegal campaign financing, rather than bribes.Valerio, who held multiple PT and government contracts, on Tuesday handed out a list of 79 people – many linked to the opposition Social Democratic and Liberal Front parties – who got undeclared loans from him during Brazil’s 1998 elections.Ruling party legislators said the evidence of long-standing illegal campaign funding by Brazilian parties showed the crisis was in Congress and should not threaten the government.”This is a party political crisis, it won’t reach Lula,” PT Deputy Mauricio Rands said.Opposition lawmakers said it was only a matter of time before they found a link between Lula and around US$24 million (about N$156 million) in undeclared loans by Valerio between 2003 and 2004.Brazil’s media is tracking funds used to pay for Lula’s political campaigns and even his wife’s credit cards.- Nampa-Reuters (Additional reporting by Aureo Germano and Natuza Nery)”I’m not going to resign, I’m quite calm, I committed no crime,” Dirceu told reporters as the ethics council began to consider whether to ban him from Congress for eight years after allegations that he masterminded a bribes-for-votes scheme.The accusations that President Luiz Inacio Lula da Silva’s ruling Workers Party (PT) used public funds to bribe allied lawmakers has brought on the worst political scandal in a decade in Latin America’s largest country.At least 18 lawmakers face possible expulsion from Congress and many more may be brought in front of the ethics council as the scandal sweeps into opposition party ranks.Dirceu, once seen as the power behind the throne, stepped down as Lula’s cabinet chief in June.Four PT leaders have also resigned after being accused of running the scheme.The government’s Congressional coalition has crumbled after many party leaders were accused of taking bribes.Investors fear Lula may lose control of tight fiscal controls.The Senate on Wednesday passed an opposition proposal to increase the minimum monthly wage to 384 reais (about N$1 092), rather than the government’s 300 reais goal.The lower house must now vote on the opposition proposal – which would increase social security costs by 12 billion reais if approved, according to the government.Lula has denied knowledge of illegal funding or bribes and said allegations he let his party embezzle cash are a plot by Brazil’s political and media elite to block his re-election.The PT has admitted taking undeclared loans from publicist Marcos Valerio but says the money was used for illegal campaign financing, rather than bribes.Valerio, who held multiple PT and government contracts, on Tuesday handed out a list of 79 people – many linked to the opposition Social Democratic and Liberal Front parties – who got undeclared loans from him during Brazil’s 1998 elections.Ruling party legislators said the evidence of long-standing illegal campaign funding by Brazilian parties showed the crisis was in Congress and should not threaten the government.”This is a party political crisis, it won’t reach Lula,” PT Deputy Mauricio Rands said.Opposition lawmakers said it was only a matter of time before they found a link between Lula and around US$24 million (about N$156 million) in undeclared loans by Valerio between 2003 and 2004.Brazil’s media is tracking funds used to pay for Lula’s political campaigns and even his wife’s credit cards.- Nampa-Reuters (Additional reporting by Aureo Germano and Natuza Nery)