Tweet
Personally, I find this scandal a real shame, because Lula has followed solid economic policies, from which Brazil will benefit for generations. He's a credit to the left, and offers a nice contrast to the idiocies of the likes of Chavez.
However, I understand why this scandal is so damaging. Sounds like a real horror show of corruption.
Here's FT...
However, I understand why this scandal is so damaging. Sounds like a real horror show of corruption.
Here's FT...
Lula survival in doubt after revelations
By Raymond Colitt in São Paulo
Published: August 12 2005 18:44 | Last updated: August 12 2005 18:44
President Luiz Inácio Lula da Silva's political survival was thrown into doubt on Friday after key testimony before a congressional inquiry revealed that his Workers' party illegally financed its 2002 election campaign.
Mr Lula da Silva refused to accept direct responsibilty for the political crisis during a nationwide televised address to discuss the three-month old corruption scandal that has rocked his government.
“I feel betrayed by unacceptable practices that I never new about,” he said during the address, which had been scheduled to come before a cabinet meeting.
“I am not ashamed to say that we have to apologise,” he said. “I want to tell you, don't lose hope. I know you are angry. I certainly am as angry as any Brazilian or more.”
For the first time since the scandal broke, an opinion poll on Friday showed Mr Lula da Silva would lose the October 2006 general elections. José Serra, São Paulo's mayor, would win with 48 per cent of the vote against 39 per cent for Mr Lula da Silva in a run-off election, according to Datafolha polling firm.
Unlike in parliamentary systems, in Brazil the president cannot call early elections. If he resigns, José Alencar, his vice-president, would take over.
In surprise testimony before a congressional inquiry into corruption this week, Duda Mendonça, Mr Lula da Silva's campaign manager, said he received some R$15m ($6m, €5m, £3m) under the table in cash and an offshore account in the Bahamas in 2002 to finance part of the Workers' party election campaign, including that of Mr Lula da Silva. The money came from Marcos Valerio, a publicist with large government contracts investigated for corruption, tax fraud and money laundering. The former PT treasurer admitted using Mr Valerio to raise illegal campaign funds for his party and its allies.
Financial markets fell sharply following the testimony on Thursday, recovering marginally later. At midday on Friday Brazil's currency traded at R$2.39 against the dollar, down 4 per cent from Wednesday. The São Paulo stock exchange was down more than 3 per cent over the same period.
Under the campaign slogan “love and peace”, Mr Mendonça helped Mr Lula da Silva in 2002 to shed his image as radical union leader to portray himself as a moderate. Now the marketing guru may have contributed to Mr Lula da Silva's downfall.
The financing scheme revealed by Mr Mendonça implies not only electoral fraud but tax and currency evasion, and possibly money laundering. The president and José Dirceu, his former chief of staff, both signed the 2002 campaign fund declarations.
Following the testimony by Mr Mendonça, angry and incredulous PT congressmen issued a statement saying “the hope of 52m voters had been betrayed”. Several broke into tears and said the PT owed society an apology.
“It's very sad that the PT comrades didn't tell the truth after two and a half years. I'm perplexed and infuriated,” said Aloisio Mercadante, elected most popular senator in Brazil's history with the aid of Mr Mendonça's campaign.
Opposition leaders said the government had lost all credibility and support. “Today the Lula government ended,” said Arthur Virgilio, Senate leader of the opposition social democratic PSDB party.
Yet analysts suggest the opposition may try to negotiate an agreement in which they would guarantee Mr Lula da Silva that he finish his term in exchange for a pledge not to stand for re-election.
By Raymond Colitt in São Paulo
Published: August 12 2005 18:44 | Last updated: August 12 2005 18:44
President Luiz Inácio Lula da Silva's political survival was thrown into doubt on Friday after key testimony before a congressional inquiry revealed that his Workers' party illegally financed its 2002 election campaign.
Mr Lula da Silva refused to accept direct responsibilty for the political crisis during a nationwide televised address to discuss the three-month old corruption scandal that has rocked his government.
“I feel betrayed by unacceptable practices that I never new about,” he said during the address, which had been scheduled to come before a cabinet meeting.
“I am not ashamed to say that we have to apologise,” he said. “I want to tell you, don't lose hope. I know you are angry. I certainly am as angry as any Brazilian or more.”
For the first time since the scandal broke, an opinion poll on Friday showed Mr Lula da Silva would lose the October 2006 general elections. José Serra, São Paulo's mayor, would win with 48 per cent of the vote against 39 per cent for Mr Lula da Silva in a run-off election, according to Datafolha polling firm.
Unlike in parliamentary systems, in Brazil the president cannot call early elections. If he resigns, José Alencar, his vice-president, would take over.
In surprise testimony before a congressional inquiry into corruption this week, Duda Mendonça, Mr Lula da Silva's campaign manager, said he received some R$15m ($6m, €5m, £3m) under the table in cash and an offshore account in the Bahamas in 2002 to finance part of the Workers' party election campaign, including that of Mr Lula da Silva. The money came from Marcos Valerio, a publicist with large government contracts investigated for corruption, tax fraud and money laundering. The former PT treasurer admitted using Mr Valerio to raise illegal campaign funds for his party and its allies.
Financial markets fell sharply following the testimony on Thursday, recovering marginally later. At midday on Friday Brazil's currency traded at R$2.39 against the dollar, down 4 per cent from Wednesday. The São Paulo stock exchange was down more than 3 per cent over the same period.
Under the campaign slogan “love and peace”, Mr Mendonça helped Mr Lula da Silva in 2002 to shed his image as radical union leader to portray himself as a moderate. Now the marketing guru may have contributed to Mr Lula da Silva's downfall.
The financing scheme revealed by Mr Mendonça implies not only electoral fraud but tax and currency evasion, and possibly money laundering. The president and José Dirceu, his former chief of staff, both signed the 2002 campaign fund declarations.
Following the testimony by Mr Mendonça, angry and incredulous PT congressmen issued a statement saying “the hope of 52m voters had been betrayed”. Several broke into tears and said the PT owed society an apology.
“It's very sad that the PT comrades didn't tell the truth after two and a half years. I'm perplexed and infuriated,” said Aloisio Mercadante, elected most popular senator in Brazil's history with the aid of Mr Mendonça's campaign.
Opposition leaders said the government had lost all credibility and support. “Today the Lula government ended,” said Arthur Virgilio, Senate leader of the opposition social democratic PSDB party.
Yet analysts suggest the opposition may try to negotiate an agreement in which they would guarantee Mr Lula da Silva that he finish his term in exchange for a pledge not to stand for re-election.