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Fall of Brazil's Chief of Staff Is Black Day for Lula PDF Print E-mail
2005 - June 2005
Written by Arthur Ituassu   
Friday, 17 June 2005 11:16

{mosimage}The South African President, Thabo Mbeki, sacked his deputy Jacob Zuma on 14 June over a corruption scandal. In Brazil, President Luis Inácio Lula da Silva's chief of staff, José Dirceu, "one of the most powerful figures in Brazil's government" did not wait to be pushed.

Dirceu furiously denies the vote-buying allegations that impelled his resignation. The markets may be happy, the Venezuelan leader Hugo Chávez sad, and Brazil's opposition delighted, but for Lula himself it is a black moment.

The resignation follows testimony to a congressional committee on 14 June by Roberto Jefferson, head of the small Labor Party (PTB) that supports Lula in parliamentary votes, that government officials have paid congressmen from other parties to support Lula's policies.

A lot of money is involved. For a businessman to earn the same monthly payment that is alleged to have routinely changed hands (30,000 reais, or US$ 12,589.70) he would have to work pretty hard in Brazil.

Lula's government was slow to announce an investigation into the affair, and the one it launched has had little effect. Lula's governing Workers' Party (Partido dos Trabalhadores, PT) is suffering in the opinion polls from the taint of corruption.

The situation is a mess. Roberto Jefferson is now saying that he told Lula about the scandal before it became public knowledge.

Jefferson is a very skilled politician who has been in parliament for 23 years and is remembered for his defense of the deeply unpopular former president Fernando Collor de Mello over Collor's impeachment hearings in 1992.

Jefferson also claims that Lula's government promised the PTB a substantial sum to fund it in the next mayoral elections in 2006, but that the money has not yet been paid.

In one sense, Jefferson represents the discontent of many congressmen with the government, something evident in the election of Severino Cavalcanti of the Progressive Party (PP) as president of the chamber of deputies, a post that tradition would have given to the PT.

Cavalcanti is a populist conservative who claims to be against homosexuality and is the leader of the baixo clero (lower clergy), a group whose support of the President is conditional on Lula giving them more power, money and space to operate.

Lula's political problems, then, were considerable even before the party-finance scandal and the loss of José Dirceu.

Governing with an ever-shifting group of small parties is certainly difficult, especially when the parties themselves are survival vehicles for conglomerates of congressmen whose aim is to endure no matter who is in charge.

Politicians in Brazil can switch parties freely and alliances are not strong enough to establish groups with a clear ideological position or shared projects.

In addition, there is huge fragmentation in Congress and the PT does not have the numbers to govern alone. In the past, people thought that an alliance between PT and PSDB (former President Fernando Henrique Cardoso's party) would be the solution.

But between them they polarized the political spectrum and now both need an alliance with smaller parties to govern. The PSDB has teamed up with the Liberal Front Party (PFL), a traditional rural coronel (colonel) organization.

In one sense, polarization guarantees a division of power and more institutional stability. The problem is that the trend also makes it harder for the governing party to operate and invites it to send signals that its policies are for rent.

Lula's government is reacting to José Dirceu's departure by saying that to end corruption, Brazil has to enact the PT's long-expected political reform program. Even were it to succeed, this will not absolve those guilty of stealing the people's money.

Arthur Ituassu writes for the Rio's daily Jornal do Brasil and is professor of international relations at the Pontifícia Universidade Católica in Rio de Janeiro, Brazil. You can read more from him at his website: www.labirinto-rio.com.br. This article appeared originally in Open Democracy - www.opendemocracy.net.



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Comments (84)Add Comment
no law against taking bribes?
written by Guest, June 17, 2005
Has any Brazilian politician ever gone to prison for accepting a bribe?
Has any Brazilian politician ever accepted a bribe?
One solution
written by Guest, June 18, 2005
Close down the state! Let's fight for it. The brazilian state is of no use for me and for most of the southern people. Besides that, we are the ones who pay most taxes in comparison to what we receive back, with the exception of the Sao Paulo state (of course, it's a sin to get rich in this country, so the richest state in the country must be ashamed of its wealth and distribute its wealth among northeastern politicians).

No government money for anything but security! And no government money for stupid so-called brazilian artists who say we are aliens! South independent already!!!
Re: One solution
written by Guest, June 18, 2005
That kind of thinking dooms Brazil. How incredibly ignorant. Some people just seem to have fascism in their blood I guess.
Real Solutions
written by Guest, June 18, 2005
Prof. Ituassu makes two very important points: 1) The office of president in Brazil is inherently extremely weak and will not be able to effect much change unless there's some reform that balances distribution of power and the power to get things done; and 2) The historic corruption in Brazilian politics must come to an end, which will only happen if politicians pay for their corruption both by prosecution and at the polls.

I've read a bit about Roberto Jefferson lately. I don't think his rep**ation is that good. However, I also read that he testified that Lula was not aware of the alleged bribes and that he reacted as though a knife had been thrust into his back. Lula has also stated that no one will be protected and that "we will cut into our own flesh" if necessary. I believe him. I do not believe that Lula is corrupt. Rather, I believe that many, many politicians in Brazil are corrupt in all political parties. I am encouraged by the investigations and prosecutions of political corruption in Brazil, hoping that it is the beginning of a long-overdue, painful process of brining an end to corruption. If the allegations are shown to be true, I hope that every politician involved is punnished, including, of course those that paid and those who were paid for votes.

I sincerely believe that Lula is an honest man who wants to do what he thinks is best for Brazil. Unfortunately, doing what's right in Brazil is nearly an impossible task, becuase of the weak office of the president in part and also because of the culture of corruption.

The democracy has been in existence for only two decades, and follows a corrupt and dirty past. The recent investigations and prosecutions (for example most recently the arrests regarding logging corruption) are healthy. They will ultimately establish Brazil as a nation of laws, not of men. For far too long it has been the other way around.

I don't agree with those who would throw their hands in the air and proclaim that all politicians are corrupt on the one hand but want a government and military to protect them on the other hand, ignoring the brutal and often deadly corruption of the police and military (like our southern cypto-fascist sepratist above). People must perservere in democracy and expect more from their government. Reward those who have the honesty and courage to fight against corruption with votes and punnish those who are corrupt, wherever they may be. These are real solutions.

I think Lula has the integrity and courage to cut into his own flesh to rid the country of corruption. He's not going to rush to judgment, nor should he. I feel badly for him that he might have had his political philosophy so betrayed by people thinking they are helping by paying off people so cynical as to give their votes, the public they represent, for money. But, I think he will do whatever is necessary based on the results of the investigations. I hope he also becomes more proactive in discovering corruption from the prefeituras to the Brasilia
Re: One solution
written by Guest, June 19, 2005
Who is facist here? The brazilian labor legislation was made by Vargas, who was a facist president. The structure of the union, both of workers and companies, is a facist one. Brazil never quit being a facist country since then, and president Lula himself already admitted it. It's facism the kind of thinking that really dooms Brazil. The message is clear to southeners. Be entrepreneurs, take the risks and distribute your wealth when and if you manage to success. And then shut up and be a good and proud brazilian who loves samba and non-existent government services.

And to the above poster who points out real solutions: yes, I also think Lula is "inocente" in the brazilian portuguese meaning. A dumbass, an idiot who doesn't know even what happens in the kindergarden under his very own rule. Suppose i am the president of a company and a close employee just bribed a lot of government officials in very high sums and wasted company money in other corrupt matters. Am I supposed to be considered innocent for that? If not, why should Lula be innocented then? If he didn't know it, he's a moron. If he did, he's a corrupt. I see no way out of it.
Re: One solution
written by Guest, June 19, 2005
correcting... where you read "the structure of the union", read "the structure of labor unions and employers unions". The text was not clear.
Re: One solution
written by Guest, June 19, 2005
Lula will be held responsible, but how he reacts will be important, most likely. If he does not try to protect people, he will regain trust.

Now, it's very easy, especially for Lula haters, to titter that he's a "moron" because he didn't know of the corruption. I think you're full of it though. In fact, the president of the company IS innocent under the law for the illegal acts of an employee done without the president's knowledge or authority. It happens all the time. Just what even close to the government of Brazil have you been in charge of? Nothing is my guess. So don't be such a smug, know-it-all.
union structure
written by Guest, June 19, 2005
"The structure of labor unions and employers unions, both of workers and companies, is a facist one." How so?
Re: One solution
written by Guest, June 19, 2005
I don't think the southern sepratist above knows what "fascism" means.
Re: One solution
written by Guest, June 19, 2005
Huh? People pay the same taxes at the same rate as everyone else in Brazil, northeast and south. What kind of nonsense are you talking about? Why not focus on good government reform rather than nutty separatist and fascistic ideas. You just want government to give you military and police? That's clearly a fascistic way of thinking and really stupid too. Your north/south talk also sounds very elitist and smug. You don't want to be associated with those brown people to the north? Are you from one of those nazi German families? Or maybe from the birthplace of fascism, Italy? You don't consider yourself Brazilian, you're too good for that, right?
Re: union structure
written by Guest, June 19, 2005
about Lula stating that our legislation is fascist: ]http://www.radiobras.gov.br/materia_i_2004.php?materia=223978&q=1&editoria=]

I need to have more time to write something that relates the brazilian "capitalism", if that really exists to fascist practices with some links. I just tell you that Brazil is one of the few countries that still adopts fascist concepts, such as the government leading economical improvements, such as building infra-structure things like roads, buildings, cities, etc. A unionized and highly controlled labor legislation, having both employers and employees unions, class councils etc. Read throughly, the internet has a plenty of sources explaining fascism.

That exposed, the military and police only state is not a fascist idea. It's actually a liberal one (not liberal as left, as the americans say, but liberal based on Hayek writings). All other stuff should be provided by the market. A possible exception could be education and health care, which I recognize sometimes needs some state improvement, but not to the point to outrun the companies already providing those services. Culture, development and the likes are not matter of state and should not use any tax-money income, in my vision.

And to the last falacious person who just tried to disqualify me by supposing what I am, instead of simply discussing my ideas, i reply:
1) south pays more, because it's richer (or not as poor as the rest of this miserable country). The ICMS is higher here. As a richer region, employees and companies have higher revenues, so they have to pay a higher share of taxes, like the Income Tax
2) I do not focus on government because Brazil is so different, and so deeply embraced with ridiculous leftist ideas that I do not waste my time. There are more entrepreneurs and liberals in the south, and people here have more contact with foreigners, so they do not live isolated of the rest of the world as most brazilians to the north. That leads to more open-minded people, more prone to accept the practices that worked out in other areas of the world, yet there are still many leftist people among us
3) I really do not want to be associated to the people to the north. Even because most of them do not want to be associated with me, as my experience living in the "north" exposed me clearly
4) no, I am not german
5) yes, I am italian. But what's the point here? Most italians today are against fascism. And many of them agreed to that in the early 20th century because they risked being killed. Still, I am brazilian as my id card says and I don't like samba, don't support this government and don't share the same opinion as most brazilians. Tell me I am a foreigner again, I really learned to apreciate that
6) No, I'm not better than anyone, and I'm not racist against northern brazilians, provided they do the same to me. I just defend my ideas here. I may be wrong, but I think it's difficult. What I propose is that our region act autonomously, employing the economical and political principles that proved efficient, and made the wealth of the United States, Japan, Germany, Hong Kong, Canada, Australia. Those principles are free trade, sancitity of contracts, freedom of association and expression among some others. None of these countries and territories have become rich with a centralized government, planned economy and politicians with so much power to rule and change things, as happens in Brazil today. That's what holds our region, and makes the idea of separatism so popular
...
written by Guest, June 19, 2005
Oh, you're a neo-liberal. I see. You were overstating your point by saying that government's role is only police.

I didn't call you a foreigner, you are callling yourself one. But that's how the southerners are in Brazil. You do act as though you believe you are better.
...
written by Guest, June 19, 2005
You call yourself Italian, not Brazilian. Go to Italy then, maybe you'd be happier.
...
written by Guest, June 19, 2005
Let's see, you don't approve of infra-structure things like roads, buildings, cities, etc., though you allow that maybe public education and health care are okay. Interesting. By the way, those aren't fascistic concepts.

Labor unions are absolutely necessary. In the US, for example, the only reason we have a 40-hour work week, health and safety regulations, work breaks, vacations, and other protective laws and regulations is because of labor unions. Labor unions have allowed members to obtain living wages, health care, retirement, and other benefits that aren't available to non-union workers for the most part. Labor unionism is not fascistic. It is a sensible and necessary means of equalizing the bargaining power of labor versus employers.

Employer unions are not necessary. As Adam Smith noted, business people are always in tacit agreement and whenever two or more get together the subject always turns to manipulation of the market and employees.

Lula is correct when he said, "Não é possível que alguém defenda a estrutura sindical brasileira como ela existe hoje. A estrutura sindical brasileira é cópia fiel da Carta del Lavoro, de Mussolini." That was not an "admission," but rather a criticism. I see you and he are in agreement at least in principle on this account.
To the \"Italian\"
written by Guest, June 19, 2005
It is really funny: Poor people, in need of a better life immigrated to Brazil, (some of them even received land for free), they improved their lives and now their descendents want to robe the south away from the same country which accepted their families in the past…
Had Brazil not welcomed your grandparents in the first place, where would you be now? Poor, ignorant peasants in southern Italy?
Brazil AND its immigrants profited from the immigration process which eventually shaped our nation.
Re: To the italian
written by Guest, June 19, 2005
I will start with the poster who talked about unions. I am not against unions. I defend freedom of association, and I would not be fair if I defend they should not exist. I believe they play an important role of raising the negotiation power of workers and companies. The relationship among workers and the companies, if hired through unions should be determined by the contract they firm between themselves. However, they should not be mandatory. A worker should have the right to choose if he belongs to a union or not, as well as a company can choose to belong to a employers union or not, if they think they can have more negotiation power belonging to one. Anyway, they should not have a legislation that makes them so dependent on government as is the case of Brazil, nor mandatory. That's why our unions are not really strong. It's a good business to have them and we have plenty of them, all with very little power and directors who just use them for their political plans. Most of them also offer terrible services to their associates, yet they fine them very high. The same happens to class councils. If you belong to one, I ask you if you are happy with the services offered and the amount you pay yearly to them. And I ask you if their directors are more worried about getting better services for their associates in the market or their political plans. That should be radically changed in Brazil, and even many southern leftists defend it. If unions have to show what they are worth facing the market, you'll eventually have few but strong unions, which are advantageous to their members and offer good services for the companies hiring through them as well. That's the case in the US, for instance.

Finally, the answer to the last poster. Yes, really funny... the brazilian government sent ships to Europe and made marketing campaigns to attract poor immigrant to come to this country to basically replace slave labor in the crop fields. Eventually, those immigrants succeeded and got richer, and as such, they now must give away sometimes more than half of their earnings in taxes in retribution to the wonderful country sheltered them, yet had enormous advantages in having them working here. No man, that's not the point. In addition, who is really brazilian? Portuguese descendents? Indians? Black people? Well, in the south they are even among people who defend separation. When they become less poor (who is really rich in Brazil?) they have a bully government that says they must distribute their enormous wealth to help politicians in other parts of the country to feed their fellow relatives.
As a Brasilian...
written by Guest, June 19, 2005
POLITICAL CORRUPTION IN BRASIL MUST STOP...IT IS A NATIONAL EMBARRASSMENT!

It has been going on for too long without appropriate punishment…Handle stiff sentences to those shameless rotten apples stealing from needed public funds, and you shall see considerable reduction in the number of thugs.

As a Brasilian born (fifth generation), I feel humiliated by those corrupted politicians that will not allow the nation to move forward in light of their personal greedy acts…public service is their means of getting rich.

Dirty Rats…They Ought To Be Hung!

The Point
written by Guest, June 19, 2005
The Brazilians are saying the same thing in the end, I think. They are expressing their frustration with the government in different ways. The southerner's solution is to separate from the rest of Brazil, which seems wrong-headed. It sounds like an expedient sollution for his/her "territory," but it really isn't. In fact, no solution is easy. The real solution is to work together to get rid of the corruption in politics and make the government work better fot the people. No one will be perfectly happy. There is always healthy debate from the neo-liberals to the socialists concerning policy. But, Brazil will be stronger unitied than divided. The history of corruption in Brazil is very long. Politicians at all levels don't seem to really believe it's wrong. But that seems to be changing. It would be nice to see all of Brazil working together to make the country stronger. If the southerners don't think they are enriched from the resources in the north I think they're deluded.
Who is Brazilian
written by Guest, June 19, 2005
People who are citizens of Brazil are Brazilian. Isn't that easy? If you're Brazilian, in Italy you're not Italian, you're Brazilian.
...
written by Guest, June 19, 2005
Hey, I'm from California. I don't like "hot country" music. I can't stand Bush. California's economy would be among the largest in the world counted as a separate nation. The rest of the US call us all sorts of names and don't consider us to be normal. But you don't see me calling for separation from the US. I think California is stronger as part of the US than it would be as a separate country. I'll vote, make noise, etc. to get rid of the corrupt, lying, thieving Bushies and I'll suffer the "land of fruits and nuts" and "Left Coast" comments as an American.
Re: The Point
written by Guest, June 19, 2005
Perhaps there can be some healthy debate between neo-liberals and socialists in the education and health care areas, but not in economy. The problem of corruption in Brazil is the same as in all other countries: the size of the state. Reduce its size and you will end up having less corruption (in fact, you'll be dislocating the corruption to the private and publicly owned companies, which is much better, because those companies have their receipt from the sales of their products, so that the price of corruption is paid just by the consumers of the products of those companies, instead of being shared equally among everyone. In addition, in a market economy, you buy a product from a company if you want to. No one will arrest you or beat you if you don't do it. So, if the price of the product goes too high because of internal corruption, the company will start having losses and, if it doesn't solve the problems, will be out of market. Instead, when the coruption occurs inside the government, a raise of taxes pays the price of corruption and you can be arrested or beaten if you don't pay your taxes. So, the more market-oriented an economy is, the less corruption a society will experience). Socialists made the Eastern Europe poor and also made the Western Europe lose economical importance since the eighties. It can't just believe there are people who still believe this bulls**t even when all of Eastern Europe abandoned that and even China doesn't have that anymore. I suggest that you socialists travel to Eastern Europe and ask the common people what they think of socialism. I'm sure you will be surprised.

Yes, saying the southener enrich from the resources in the north is the same as saying that US and Japan cannot survive without systematic brazilian exploitation (Puggina). That's plain ridiculous. I think the south is richer (less poor) because there is a bigger number of people here who are more prone to improve their skills and go to the market, do not rely on politicians to make their life better and do not obey the government whenever possible, because they see clearly that the government is playing against them.
Re: The Point
written by Guest, June 19, 2005
"saying the southener enrich from the resources in the north is the same as saying that US and Japan cannot survive without systematic brazilian exploitation (Puggina)." I don't understand. Explain.
...
written by Guest, June 19, 2005
The euro is replacing the dollar. I don't see that Europe lacks economic significance in the world.
...
written by Guest, June 19, 2005
I don't buy your Panglossian view of economics, but neo-liberalism is very Panglossian, and so I'm not surprised by your economic "analysis." The notion that the free market does away with corruption is wrong. You are also ignoring the power of the law and democracy in dealing with corruption. Why do free market fanatics have no faith in the free market of ideas? There is a balance between government and private enterprise that a democracy can find for each society. It will not be perfect. But those who rely on the magic of the free market are like religious fanatics -- blind to reality because of their faith to an ideology. The notion of a perfectly free market is a fairy tale. It doesn't exist. But one's faith in such nonsense leads to phony analyses like the one above where corruption disappears *poof* if you just rely on the marketplace. Do you believe in fairies? Then go to Neverland. If you are an adult, join us here in the real world to make our government and society work better.
...
written by Guest, June 19, 2005
It will not disappear. That's really fairy tale. But surely will be drastically reduced. Don't need to explain that so much. Just see the examples. They are all around the world, in a number of countries. The democracy fanatics believe all can solved by democracy, yet they see the free market ideas as anti-democratic ones. A free market economy is not perfect. It's actually far from that, and that's essentially why there is progress. But it's the most efficient way of making a country rich, as a number of countries are there to prove that. Democracy is very important, I agree. It's crucial. It's the way people have to approve or reject some authority's work. If they can't face a situation where they are judged, where they are faced in a reward/punishment system, then all is lost, and tirany is the result. However, democracy for itself is not enough. We must remember that Hitler was democratically elected. Some institutions must be sacred, like the complete separation of powers (which really doesn't occur in Brazil, just check the interference that the Executive have in the Legislative and Judiciary powers). And I would add an independent central bank too. That could not be changed, not even in democratical ways. Brazilians should look to US as an example. It's necessary to apply the concepts of the Founding Fathers here. Not even democratically, one individual or group should have too much power in his/her hand. That leads to abuse. They have built a system where the power is more balanced, and most of it is given to each state to make things happen internally. Centralized governments like the brazilian one made no country to progress. The examples are all out there.
Re: The point
written by Guest, June 19, 2005
The poster said that southeners don't recognize they are rich because they use the resources of the north. That's the retorics of the poor. Many brazilians like to say that US and Japan are rich because they exploit the poor countries, buying their resources cheaply and selling expensive high-tech products. Brazilians don't they are playing the dumb part in all of this. Instead of letting people develop technologies here, overtax the technological industries to subsidize the commodities industries, and then claim that the ever falling prices of those products happen because of some trickery of americans and japanese. The same argument, as was used by the poster and is widely used is applied to São Paulo and the southern states. They are rich because they exploit the resources to the north and employ cheap northeastern workers. That's nonsense
...
written by Guest, June 19, 2005
The euro is replacing dollar in some parts of the world, notably in Europe and some who make business with them. That's because they are betting in the euro and some change of mind of europeans. However, it's clear that Europe lost a lot of economical importance. To verify that, compare the per capita GNP of european countries to US, China, South Korea and Japan in the early eighties and compare them now.

Euro had a huge devalorization since the European Constitution was not approved in France, and Europe is facing a huge political crisis. Even euro is under threat, and many many europeans don't really like the money. In addition, many people want the return of mark in Germany and Lira in Italy. However, I am just waiting to see what will be of all of this. I can't read the future.
REVOLUTION
written by Guest, June 19, 2005
It is time to do a revolution like Fidel Castro did. Send all these members from PT to the big wall and massacre them. It is ashamed the level of corruption in Brazil. The crowd should make justice with the own hands.
PT never more!
go figure.
written by Guest, June 19, 2005
very funny posts

T

They going crazy in Brazil because the State is taking money from corporations and private lobbies??
LOLLLLLLLLLLLL is that news????????????? LOLLLLLL

Did you ever hear in America the expression Corporation Lobby????



Did ever hear about kickbacks???

Most people have no idea about the big ammount of corruption that happens in the so call "First World countries"

The eternal idea that corruption is only a Brazilian thing shows that most people here in this room (include Brazzil magazine) have no idea what is going on around the world


The Parties are taking money from people to make their elections candidate winners ??????


Is that news?????

Bush Helps Republicans Raise $23 Million By
By SHARON THEIMER, Associated Press Writer
Wed Jun 15, 8:43 AM ET



Republican members of Congress have an additional $23 million in the bank, thanks in large part to the efforts of President Bush. GOP leaders spent much of Monday and Tuesday entertaining campaign donors, but it was Bush's speech at a gala Tuesday night that drew the people who shelled out $2,500 per ticket.

Bush reiterated his favorite recent themes, calling for an overhaul of the tax code, a national energy bill and permanent tax relief. He accused Democrats of trying to block all of them.

"Political parties that choose the path of obstruction will not gain the trust of the American people," he said. "If leaders of the other party have innovative ideas, let's hear them. But if they have no ideas or policies except obstruction, they should step aside and let others lead."

The fundraiser brought in $14 million for House Republicans and $9 million for GOP senators. More than 5,000 people filled the Washington Convention Center to hear Bush speak.

Swing band Big Bad Voodoo Daddy entertained the crowd before and after the dinner, which had a red, white and blue theme and images of Washington landmarks, including the White House, as the backdrop.

Among those attending was Mary Carey, a porn star who says she plans to run for lieutenant governor of California next year as an independent.

A few hours before the dinner, Carey met with reporters to show off her evening gown — black, floor-length — and talk about a Republican lunch she and her boss, adult film executive Mark Kulkis, attended to hear presidential adviser Karl Rove speak.

In Pennsylvania earlier Tuesday, Bush helped raise $1.5 million for the re-election campaign of Sen. Rick Santorum (news, bio, voting record), a favorite of the socially conservative movement who is a top target of Democrats in the 2006 midterm elections.




kickBACKS??? lollllllllll
written by Guest, June 19, 2005



Padded Bills for Airport Alleged

Lawsuit says contract management company aided in overcharging for John Wayne work by $1.5million in part for kickbacks and bribes.

By Jean O. Pasco
Times Staff Writer

June 17, 2005

An Orange County company that managed paving and construction contracts for John Wayne Airport is accused in a federal civil lawsuit of steering work to a company that allegedly inflated its bills by $1.5 million and using the money partly for bribes and kickbacks.

According to the lawsuit, an employee of project manager JHTM & Associates allegedly received an initial $10,000 bribe in 1996, slipped into an envelope stuffed inches thick with $100 bills at a sushi restaurant near the airport.

Named in the lawsuit were JHTM & Associates, hired by the airport to manage its contracts, and company representatives David McMiller of Rancho Santa Margarita and Sean Donnelly of Mission Viejo.

Also named were Sequel Contractors Inc. of Santa Fe Springs, which did the airport work, and its principals, Thomas S. Pack, Mitchell W. Ward of Downey and Abel Magallanes of Bellflower.

The accusations are part of a false-claims lawsuit filed under seal last year in U.S. District Court in Santa Ana by a rival paving company. Orange County joined the litigation late last month, which led to the lawsuit becoming public.

Representatives for JHTM and Sequel couldn't be reached Thursday for comment. McMiller, who allegedly accepted the bribe at the restaurant, declined to comment.

The county is asking the court to award triple damages for the amount it says it lost — or $4.5 million — plus $10,000 for each false statement or claim, or not less than $420,000.

"We have direction from the Board of Supervisors to aggressively pursue this matter," county Counsel Benjamin P. de Mayo said Thursday.

The lawsuit has yet to be heard.

Mark Macaulay, spokesman for the Orange County district attorney's office, said Thursday that the county has not asked prosecutors to investigate the case.

Sequel won the annual paving contract in 1996 to maintain the airport's 11 million square feet of asphalt and concrete, according to county records. The bidding process was overseen by JHTM, which managed construction projects on behalf of the county-owned airfield. Sequel also won annual paving contracts for 1997 through 2004.

From 1996 to 2003, the suit alleges, Sequel padded charges on its county bills to pay for building a retaining wall, a swimming pool and a new driveway at McMiller's home, work allegedly disguised as airport jobs.

County investigators discovered that 30 job orders and 42 payment requests filed with the county through JHTM on behalf of Sequel contained false and misleading information that resulted in overcharges, according to the county in its lawsuit, which incorporated allegations by Sialic Contractors Corp.

County investigators also are reviewing other John Wayne Airport contracts managed by JHTM from 1994, when the company took over as project manager, to September 2004, when the county stopped using the company. The work was reassigned to airport staff and a different airport contractor.

The false-claims lawsuit originally was filed under seal in March 2004 by Sialic, which became suspicious after losing work to Sequel. Named as plaintiffs were the federal, state and county governments because work at the airport was paid from federal airport grants and county funds. The fraud claims were brought under the state's false-claims law, which forbids contractors to misrepresent work on government contracts.

Sialic's lawsuit triggered a separate investigation by county officials, who until then were unaware of the alleged fraud, according to court documents. The county officially intervened May 27, at which point the case was unsealed and the defendants were notified of the suit by county attorneys. The defendants have yet to file responses in court to the allegations.

Under the state's false-claims act, Sialic — as a reward for blowing the whistle on the alleged wrongdoing — could be awarded up to 33% of what the county eventually may recover for bringing the lawsuit. Sialic's investigation uncovered alleged bribery and kickbacks by Sequel, whose three principals had worked for Sialic before leaving to start their own firm, said Sialic's attorney, Don Warren of San Diego.

The investigation discovered that Sequel, in alleged collusion with JHTM, purportedly conspired to inflate their airport jobs by as much as 66% overall, Warren said. A paving job that was awarded for 1,000 square feet, for example, would be later billed for 10,000 square feet, said Warren's partner, Phil Benson of Anaheim.

A former employee of Sequel who went to work for Sialic is expected to testify on behalf of the county, the attorneys said.

"Cheating the government is the world's second-oldest profession," Warren said. He and Benson will remain involved with the suit, though Orange County officially has now taken the lead on the consolidated case.

From 1997 to September 2004, JHTM was paid about $5.5 million for its management role at the airport, county officials said. Sequel's contracts called for the company to be paid up to $1 million a year for paving work, although exact payments weren't available late Thursday.

According to Sialic's lawsuit, Pack, of Sequel, allegedly developed a relationship with McMiller when the two worked on a paving project on Airport Drive, near John Wayne Airport.

After Pack left Sialic to form Sequel, the suit alleges, he and McMiller colluded to unlawfully steer repair, maintenance and construction projects to Sequel and to inflate payments to Sequel for the projects in exchange for bribes and kickbacks to McMiller.

Attorneys Warren and Benson said airport officials weren't to blame for the alleged fraud.

"My view is that this was a system of trust," Warren said. "Government entities have to rely on the integrity of their contractors
EVEN THE CANADIAN???lollllllll
written by Guest, June 19, 2005
Liberals owe Canadians $5.4 million: Bloc
Last Updated Wed, 15 Jun 2005 15:19:17 EDT
CBC News
The Liberal Party of Canada owes Canadian taxpayers at least $5.4 million in money it received through sponsorship kickbacks, lawyers for opposition parties told the Gomery inquiry Wednesday.


INDEPTH: Sponsorship Scandal


Justice John Gomery. (File photo)
"All this money should be returned," said Clément Groleau, representing the Bloc Québécois.

The Bloc and the Conservative Party were making their closing arguments to Justice John Gomery before he settles in to write his report.

Lawyers for both parties described federal sponsorship and advertising activities in Quebec in the late 1990s as a corrupt "system" designed to reward Liberal friends – and benefit the Liberal Party of Canada – by way of kickbacks and illicit donations.

The Bloc's figure of $5.4 million that it said should be reimbursed to taxpayers includes:


$2.9 million in hidden commissions paid to Jacques Corriveau, a friend of former Liberal prime minister Jean Chrétien.
$1.7 million that ad executive Jean Brault contributed to the party.
$769,000 in donations to the Liberal party made by other players in the sponsorship affair.
The Conservatives' lawyer agreed with the Bloc's math.

But Liberal Party of Canada lawyer Doug Mitchell disputed the Quebec-based party's calculations.

"When you get to $5.4 million on the evidence, we're going way, way, way too far," he protested.

He told Gomery that Corriveau kept much of the money he received from the program, and said evidence presented at the inquiry could show the party receiving only $232,000 in illicit donations.

The party is prepared to pay back that money, and it's already set up a $750,000 trust fund as a sign of faith, Mitchell said.

He added that the scandal is the fault of a "few rogue members" of the Liberal party, arguing there was no evidence of a government-orchestrated kickback system.

lolllllllll
written by Guest, June 19, 2005
.S. indicts four in New Orleans city corruption probe


NEW ORLEANS (AP) -- A businessman close to ex-mayor Marc Morial and the city's former top property manager were indicted Thursday in a kickback scheme, part of an ongoing federal probe into municipal corruption here.

Businessman and restaurateur Stan "Pampy" Barre was charged with taking tens of thousands of dollars in kickbacks from a city subcontractor, then sharing the money with Kerry De Cay, the director of property management under Morial.
Morial, now head of the New York City-based National Urban League, was not named in Thursday's indictment.

However, his administration, which ran the city from 1994 to 2002, has been under federal investigation for more than a year over its contracting practices. Other businessmen close to the ex-mayor are known to have received subpoenas, but Thursday's indictments were the first in the continuing investigation.

They center around a $65 million contract to upgrade chillers, boilers, lights and other energy-related fixtures in municipal buildings. De Cay oversaw the contract with Johnson Controls Inc. of Milwaukee; Barre was hired as a subcontractor. The owner of a New Orleans restaurant popular with city power brokers during the Morial years, Barre also holds lucrative concessions at the New Orleans-governed Louis Armstrong International Airport just west of the city.

Federal officials say Barre did little or no work for Johnson, though he was paid thousands by them. They say another Johnson subcontractor, also indicted, "funneled" $546,000 to Barre, who then shared the money with De Cay and a Johnson official. The other subcontractor, Reginald Walker, also was indicted Thursday; the Johnson official was not.


De Cay got a Super Bowl ticket, a custom-made glass table, a Viking refrigerator, an ice maker, a pool pump and cash as kickbacks from other subcontractors on the job, according to the indictment. Johnson installed thermostats at his residence, at no charge, the indictment says. A third subcontractor, Julius Lips Jr. -- the man who provided the glass table -- was indicted as well.

U.S. Attorney Jim Letten said at a press conference Thursday that Johnson Controls had been "victimized" in the kickback scheme. The defendants were charged with multiple counts of mail fraud, money laundering and obstruction of justice.

Letten said the investigation was continuing and that it was his "fervent hope and belief" that other federal charges would be forthcoming "in the coming weeks."



Copyright © 2005. Slidell Sentry-News.



Whoever you are..........DT
written by Guest, June 19, 2005
For whoever said:

" Brazil is one of the few countries that still adopts fascist concepts, such as the government leading economical improvements, such as building infra-structure things like roads, buildings, cities, etc"

Needs to read books on US history. The government does invest billions and did invest billions in roads, railroads etc. throughout the United States of America! In Brazil the need to invest in its infrastructure is dire, and in the area of about 25 biliion reais a year! Look, the government passed a law called PPP, which is suppose to incentive more private capital in Brazil's infrastructure! The Chinese are already investing billions in improving Brazilian seaports, roads, railroads etc.....The government must have reduce its bloated reach in some areas but in other sectors a more active government could help boost economic growth! But I do agree tax cuts would go a long way to improving economic growth, and reducing corruption or government waste!
The government throughout FHC sold everything that was state owned. Most companies are now private but give it time! Brazil still has a lot more to do and it all starts with POLITICAL REFORM!
Corruptution thrives ...
written by Guest, June 19, 2005
- When one party is in control of major branches of govt, or collusion on part of both major parties
- When middle class is distracted, and turns a blind eye to the thievery
- The populace in general doesn't expect any better
- When the same gang of thieves is returned to office year after year
- Weak judicary unable or unwilling to prosecute,convict and punish wrongdoers with heavy sentences
Corruption thrives ( cont )...
written by Guest, June 19, 2005
Should have also added:
- When the media is lazy, asleep, or muzzled by the state
...
written by Guest, June 19, 2005
When one party is in control of major branches of govt, or collusion on part of both major parties

Republicans control de Presidency,Senator and House of representatives

- When middle class is distracted, and turns a blind eye to the thievery

Sure inflation in america is only 1% a year LOILLLLLLLLLL

- The populace in general doesn't expect any better

most the time only 30% of people in America vote
- When the same gang of thieves is returned to office year after year

4 for years for republicans- LOLLLLLLL
-
Weak judicary unable or unwilling to prosecute,convict and punish wrongdoers with heavy sentences

Could agree more LOLLLLLLL

On May 31, 2005, the Supreme Court unanimously reversed the conviction of Arthur Andersen LLP for obstructing an official proceeding by ordering the destruction of documents. The Court held that 18 U.S.C. § 1512(b)(2), a witness-tampering statute, is not violated if the defendant is not conscious of his wrongdoing, does not have in mind a "particular official proceeding" that his conduct will obstruct, or intends to do no more than "impede" that proceeding. This decision is important to any business with a document retention policy, and to any business that must comply with the document retention requirements imposed by federal law following enactment of the Sarbanes-Oxley Act.




Just ad to DT
written by Guest, June 19, 2005


New Oakland bridge in San Francisco is clear vision of the State waisting money

Inicial cost -1.7 billion of public money

Adjust cost now -7.6 billion

Funding completion of Oakland-Bay Bridge in competing Legislature bills

Wed Jun 8, 8:30 PM ET

A proposed $7.7 billion bond measure focused heavily on retrofitting the 1989 quake-damaged Oakland-Bay Bridge could be a double-edged sword, and a San Diego assemblyman has an alternate plan.

The bond measure is the brainchild of State Senator Don Perata, D-Oakland, who is seeking a way to bankroll the partially completed Bay Bridge that has been bleeding money at the rate of $400,000 for every day the job is idle.

The proposed bond would first allocate $1.36 billion toward the completion of the bridge. A $1 increase in Bay area tolls would take the bridge total to $3.2 billion. Some estimates, however, place completion of the Bay Bridge at $8 billion.

While the exact benefits of Perata's proposed $7.7 billion bond were not broken out, San Diego would get some funding from $2.5 billion that would be allocated for projects throughout the state.

Among the jobs that would benefit here include the relocation and enhancement of the air cargo facility at Lindbergh Field; the upgrading of state Route 905 to freeway status; developing the Otay Mesa East port of entry; and the construction of a state Route 11 and state Route 905 connection.

As for the effective costs here, the California Department of Transportation (Caltrans), based on a $3.2 billion estimate for the bridge alone, calculated that San Diego's pro-rata share of the bond payback would equate to $175.6 million.

However, since the proposed $1 increase in Bay area bridge tolls would defray more than half the $3.2 billion estimated necessary to complete the bridge, San Diego County's share of paying off the $7.7 billion bond would be about $82.8 million.

Improvements to six other Bay area toll bridges are also part of the package. Originally the bill called for much of the rest of the money to be spent on the retrofitting of hospitals, but that provision has since been removed.

While the Bay Bridge is the big ticket item, there are others. Perata's bill identifies some 1,600 miles of levees in the state that are in need of an estimated $1 billion worth of repair.

The levees reportedly protect more than 500,000 people, 2 million acres of cultivated land, and 200,000 structures with an estimated value of $47 billion dollars.

Another $2.3 billion would be used to restore Proposition 42 half-cent sales tax funds for transportation improvements that had been taken away last year to help balance the state budget. San Diego would see approximately $167 million of that.

A total of $2 billion would be applied toward improving California's port infrastructure, including San Diego's.

Some $439 billion, or 20 percent of all U.S. trade, passed through California's ports in 2000, Perata noted. The trade industry provides more than 1 million jobs in California and income estimated at $33 billion. Trade in California is estimated to double between now and 2020.

Other items in the bill include hundreds of millions of dollars to improve port safety, highways, air quality and affordable housing.

A State Senate Committee, meanwhile, recently gave the green light to the plan, and while the whole State Senate may give the OK as well, a tougher fight is expected in the Assembly. The bill just reached the Senate floor Wednesday.

If Perata's plan is passed by the Legislature, a veto by the governor is considered a strong possibility. If the measure survives a veto, it would be placed on the November 2006 ballot where it would have to garner a two-thirds vote to pass.

And what would happen if the $7.7 billion bond measure were to die?

Assemblyman George Plescia, R-Mira Mesa, said the simple solution is to buy a cheaper bridge rather than one that is pretty and expensive.

Gov. Schwarzenegger agrees that by extending the skyway of the bridge all the way to Yerba Buena Island, hundreds of millions of dollars could be saved over a single-tower, cable-stay structure.

Perata spokeswoman Alicia Dlugosh disagrees, arguing that it would be much more prudent to go with an approved plan, rather than start from scratch (a whole new environmental impact report would be required for one thing).

"This plan (the cable stay) has already gone through inspections ... No one has shown us the simple skyway would be any less expensive. The Richmond-San Raphael Bridge is a skyway and the cost overruns are astronomical," Dlugosh said.

The governor has made it clear whatever the kind of bridge, he wants the Bay area to bear future cost overruns, rather than distributing these costs throughout the state.

Schwarzenegger spokeswoman Margita Thompson said the administration opposes Perata's bond measure, saying the governor "doesn't believe that borrowing money that has to be repaid by state taxpayers is the right way to go."'

Plescia agrees and has come up with a plan of his own.

Plescia's bill, AB1714, which he claims could be done without a bond issuance or a tax increase, would revise the estimated cost of the program downward to about $7.1 billion.

He said that if the cost happened to go above $7.1 billion, that Caltrans could program up to, but not more than, $448 million to cover those contingencies.

Plescia's bill would include $4.83 billion for the replacement of Bay area bridges, including $2.6 million for the east span of the Bay Bridge (as a skyway bridge) and revises the costs for six other bridges in the Bay area that need retrofitting. '

Under an existing statute, the state is legally bound to build a cable stay bridge, but Plescia would strike this requirement from the law.

"A myriad of complexities have arisen due to the self-anchored suspension design required by statute," Plescia writes. "These complexities threaten to delay ultimate delivery of a completed bridge and also threaten to add even further costs to the project. The skyway design, recommended by the governor, is a more conventional bridge design. It holds the promise of an earlier delivery date at lower costs."

Related Article:

Federal inspectors find Bay Bridge welds safe (May 6, 2005)




REVOLUTION
written by Guest, June 19, 2005
It is time to do a revolution like Fidel Castro did. Send all these members from PT to the big wall and massacre them. It is ashamed the level of corruption in Brazil. The crowd should make justice with the own hands.
PT never more!
...
written by Guest, June 19, 2005
Looooollllll, why did this poster posted so many articles and facts about corruption? Did I say corruption would end up having a not so big government? Absolutely not! Read back! Of course there is corruption in all countries. That's what I said. But compare the numbers. In Brazil, it's much worse. Try making business with chinese too, man, travel the world as you said. They have a very centralized state and experience a lot of corruption too. As I said, compare the numbers. In Brazil, they do not reside in the thousands or millions of dollars. They reach billions on a regular basis. Thousands and millions are barely news. In US, the corruption is more restricted to the higher levels of government (also happens in the lower levels). Billion-dollar cases are rare and are a huge scandal when they happen. Yet, you have to compare the size of both economies. In Brazil, there is a lot of corruption at the bottom and gets much worse at the top. Size of state matters, man. In China, they shoot corrupts to death, even so they have a lot of corruption. Humans tend to be corrupt everywhere. Let someone have his/her own survival not threatened, as is the case in government (cash-flow problems can be solved with higher taxes) and you will end up having corruption and weak bosses to punish that. Happens everywhere.

About roads. Yes, every government, in every part of the world makes infra-structure buildings. The US has the Eisenhower system, and there is plenty of city and state roads. However, there are many roads built by private or public companies, not the government. That happens also in Germany and Japan. I ask you man, do you know any of those roads in Brazil? Can anyone build an alternative to paid-roads? Absolutely not! The government here takes care of infra-structure. No private person or company can start building roads and put a fee for using their road. Yet, I don't see as something right that governments in the US, Japan or Germany build roads. That should be of responsibility of companies and individuals. The only exception I make is for defense purposes, as is the case with the Eisenhower system (yet I strongly believe there was some corruption somewhere when building those roads).
LET ME EXplain.....
written by Guest, June 20, 2005
I wont argue with you that anytime government spends money, their is the potential for corruption. Its not fair to generalize. For example, Finland according to Transparency International is the least corrupt country in the world!
Ok, but I would like to add that if the government gives contract to private companies, there is also the potential for corruption! You cant say that just because it is private that corruption wont happen....the company could get the contract because of connections or maybe they overcharge the government which is also another type of corruption!
So, here is a simple plan for Brazil, renegotiate its short-term debt (to save money on debt payments), cut taxes across the board (to stimulate spending and investment) AND make sure to curb further government spending in salaries and overhead expenditures etc. in order to balance the budget (brazil's budget deficit is around 2.8 percent, which is a good start)..... STOp listening to those so say that inflation is killing Brazil, Brazil's inflation rate was 7.5 percent last year!
of course this is just to help stimulate the economy, so many other areas of the economy need improvement......
Lula Approval Unaffected
written by Guest, June 20, 2005
"Recent corruption allegations did not significantly alter the approval rating of Luiz Inacio Lula da Silva in Brazil, according to a poll by Datafolha published in Folha de Sao Paulo. 36 per cent of respondents have a positive opinion of the president’s performance, a one per cent increase since early June."
No one said
written by Guest, June 20, 2005
No one here said that the US does not have corruption. I'm not going to argue that it doesn't. The article is about Brazilian corruption.
Opinions
written by Guest, June 20, 2005
Hey, since this seems to be a popular article, I was hoping to get your opinions about two different articles I found throughout this website and I was hoping for your ideas/opinions.....
Article:
1.)http://www.brazzilmag.com/content/view/2774/49/

2.)http://www.brazzilmag.com/content/view/2837/49/
3.) http://www.brazzilmag.com/content/view/2769/49/
compare the numbers??????????????/
written by Guest, June 20, 2005
what numbers do you have about first world countries corrputions???

The fact that the numbers are low does not mean that we here in america are not fill with corruption

maybe in america the bad guys first pass a law that say is okay to screw you .

Did ever hear about pork barrels??


maybe you are reading to much VEJA(Low grade magazine in Brazil)





LOLLLLLLLLLLLL
should we use your plan in America??
written by Guest, June 20, 2005
Should we be using you plan right here in America?????? LOLLLLLL


o, here is a simple plan for Brazil, renegotiate its short-term debt (to save money on debt payments), cut taxes across the board (to stimulate spending and investment) AND make sure to curb further government spending in salaries and overhead expenditures etc. in order to balance the budget (brazil's budget deficit is around 2.8 percent, which is a good start)..... STOp listening to those so say that inflation is killing Brazil, Brazil's inflation rate was 7.5 percent last year!
of course this is just to help stimulate the economy, so many other areas of the economy need improvement......
Speding out control in America
written by Guest, June 20, 2005
http://www.cnn.com/ALLPOLITICS...rces/pork/



The Price Of Pork
Despite GOP Congress, pork-barrel spending continues apace

By R. Morris Barrett/AllPolitics

WASHINGTON (AllPolitics, June 9) -- If you want more proof that the GOP revolution has not exactly transformed Washington politics, look at the time-honored practice of so-called pork-barrel spending. Congressional lawmakers are pushing pet spending projects as hard as ever, and, while most used to go to the Democrats, it's now the GOP's turn to dish out the financial favors.
graph

Just what is pork-barrel politics? It is a longstanding Washington practice where lawmakers slip favored projects into various spending bills, sometimes in the dead of night, often bypassing normal budget authorizing procedures. A bridge here for $3 million; a dam there for $6 million; $10 million for technology research at a local university. Before long, it adds up to real money.

In era of substantial deficit spending, some recent projects may strike some as questionable -- $500,000 to study grape farming; $473,000 to study human nutrition, including low-fat snack foods; $785,000 for bluefish/striped bass research.

Critics claim lawmakers push these projects simply to shore up political support among their constituencies, without regard to the national interest, all in an effort to bring home the bacon to their state or district.

It's the kind of Capitol Hill practice that used to raise the hackles of congressional Republicans. Back in 1993, then-Minority Whip Newt Gingrich railed against the Democratic majority for "growing government to give politicians more pork-barrel handouts and bigger bureaucracies."
book

Soon after ascending to power in 1995, Gingrich and his fellow Republicans passed line-item veto legislation which would allow the president to cancel specific spending items in spending bills once they land on his desk. That law currently faces a constitutional challenge that could soon be decided by the U.S Supreme Court.

One might wonder if Republicans still support it: two years after the GOP takeover of Congress, pork-barrel spending shows no signs of abating. Researchers at the budget watchdog group Citizens Against Government Waste (CAGW), using their own criteria for pork, found about $14.5 billion in pork spending for the second session of the 104th Congress, a 16-percent increase over the first session and the highest level of pork spending identified since 1990, the first year the watchdog group began scouring Congress' 13 annual appropriations bills.

"Pork spending has simply shifted from one set of barons to another," notes CAGW president Tom Schatz. "It all proves party politics is not all that important when it comes to appropriations."
Who's taking home the most pork?

Thumb through CAGW's 1997 "Pig Book," the watchdog group's annual report on pork-barrel spending, and you'll find multi-million dollar projects going to the home states of powerful GOP appropriators, including:
stevens • $15 million for High Frequency Active Auroral Research Program in Alaska, courtesy of Alaska's Republican Senate appropriator, Ted Stevens.
shelby • $4,140,000 for the Poultry Science Facility at Auburn University in Alabama, home state of Republican Senate appropriator Richard Shelby.
hatfield • $29 million for transportation projects in Portland, Ore., home of former Sen. Mark Hatfield, who chaired the Senate Transportation Appropriations subcommittee. Included in those funds is $9 million for Portland's bus system, $6 million for Portland South/North Light Rail Transit, and $5 million for debt retirement for Port of Portland.

CAGW gave retiring GOP Sen. Hatfield its mock "Lifetime Achievement Award" for carting $103,781,000 worth of projects to Oregon in 1991, and a whopping $509,111,000 since 1991.

The Democratic barons of pork-barrel spending are still doing quite well, too, according to CAGW figures:
byrd • $6 million for the National Center for Cool and Cold Water Aquaculture in West Virginia, home of Senate Appropriations Committee ranking minority member Robert Byrd.
• $4,750,000 for Lake Pontchartrain stormwater discharge in Louisiana, home of Senate appropriator Bennett Johnston.
inouye • $45 million for the so-called SWATH oceanographic ship in Hawaii, home of Democratic Senate appropriator Daniel Inouye.

CAGW this year graced Inouye with its "Hall of Shame Award" for the $765,073,000 in projects he's steered to Hawaii since 1991.
The power of the pork game and how it's played

It's no small irony that pork-barrel politics persists in the Republican-controlled Congress. GOP lawmakers, after all, have long criticized Democrats for profligacy and for wanting to consolidate too much control Washington.

So why haven't Republicans stamped out this Washington money grab?

"Power is a seductive thing," says former Minnesota Democratic Rep. Tim Penny, now a senior fellow at the Humphrey Institute. "It's hard to remain a purist," he says. Fear is another factor, Penny adds, noting that many members of Congress strongly believe they will jeopardize their re-election chances if they don't bring home the bacon, a concern Penny calls "overrated."

Power and fear may have been guiding Gingrich who, nervous that his party could lose the majority in the 1996 elections, sent a memo to Republican appropriations committee chairmen last year urging them to fund multi-million dollar spending projects in the districts of embattled Republicans.
reps

One of those Republicans was California Rep. Frank Riggs, who was subsequently allotted $3,400,000 for projects in his district, including the dredging of a harbor near Eureka, Calif. Riggs came to Congress touting a platform of fiscal austerity. Early into his term he declared: "Only 50 days into this historical 104th Congress, Republicans have said no to business as usual in Washington."

Yet Riggs' scare at the polls in 1996 may have him clamoring for more federal projects to bring home. He is one of four sophomores added to the recently-expanded House Transportation and Infrastructure Committee, one of the most notorious pork-producing committees in Congress. Riggs declined to be interviewed for this article.

Led by Rep. Bud Shuster (who has a highway named after him in his home state of Pennsylvania), the Transportation panel will likely produce the most pork-laden piece of legislation this year in the reauthorization of the massive 1991 Intermodal Surface Transportation Efficiency Act (ISTEA). Since its first iteration in 1982, the legislation has been a favorite vehicle for lawmakers' pet projects, which have gone by the label "demonstration projects."

Cato Institute budget analyst Steve Moore says the Transportation bill "will be the key test" of pork spending this year. Noting that demonstration projects have increased in number with each reauthorization of ISTEA -- ten in 1982, 50 in 1987, and 100 in 1992 -- Moore expects "a record number of demonstration projects this year."

Indeed, according to National Journal, with the exception of a few hard-line deficit hawks, like Budget Committee Chairman John Kasich (R-Ohio), Ways and Means Committee chairman Bill Archer (R-Texas), and Rep. John Boehner (R-Ohio), the majority of House Republicans have submitted requests for demonstration projects to Shuster.
Does pork spending really matter?

Many lawmakers make no apology for pushing pet projects. For some, it's the grease that makes the legislative engine run smoothly; for others, it's one of the main reasons they are in Washington.

One senator singled out in the Citizens Against Government Waste "pig book" is Sen. Conrad Burns, a Montana Republican. Burns was judged responsible for $27,388,000 in pork-barrel spending in his home state, including nearly $22 million for housing at Malmstrom Air Force Base.
burns

Embarrassed to be in the "Pig Book"? "Not at all," Burns press secretary Matt Raymond told AllPolitics. "Montana has not had a member on the appropriations committee since Senator Mike Mansfield ... Conrad feels that there are a certain amount of discretionary funds in the budget and Montana has been neglected over those years."

"One person's pork is another person's legitimate expenditure," Raymond explains.

Some lawmakers say they oppose pork-barrel spending, but as long as Congress funds discretionary projects, they will go to bat for their constituents. No less a fiscal conservative than Sen. Phil Gramm says he'd oppose building a cheese factory on the moon, "but if we decided to do it, I would want a Texas firm to do the engineering [and] I would want to use milk from Texas cows."

Some contend that pork spending amounts to only a minuscule portion of the nation's $1-trillion budget. Critics say that's beside the point.

"In this era of deficit politics, we cost ourselves in integrity when we succumb to pork-barrel politics," Penny said. "If you preach about balanced budgets in one breath and then brag about a pork-barrel project in the next, I think you bring discredit on the process."

"Pork spending leads to other political pathologies," says Schatz, such as lawmakers placing parochial interests over national ones. Penny recalls that many of his colleagues would vote for large spending bills simply because they had a pet project attached.

There's also a question of fairness, critics contend. They point out that pork spending is heavily concentrated in the districts and states of congressional appropriators, skewing federal resources and giving a select group undue influence.

Cato's Moore says a constitutional argument can be made against pork, that "spending can only take place if it's in the general welfare." Pork spending, he says, "violates the letter and the spirit of the Constitution."

An old Washington joke is that veteran appropriator Robert Byrd would move the entire federal government to West Virginia if given the chance. Unless the line-item veto law kicks in, don't bet against Byrd, particularly if there is enough pork in the bill to bring other legislators along.
Cool it, man
written by Guest, June 20, 2005
Normally, I will defend a Brazilian who reacts against criticism of Brazil by some American know-it-all, but really, you are going crazy here. No one is debating the corruption in the US, Canada, or elsewhere. The article is about what's happening in Brazil and was written by a Brazilian. Cool your jets dude.
...
written by Guest, June 20, 2005
If you're trying to defend Brazil's corruption by saying, "Well it's done in the US and everywhere else too!" you are making a mistake. I don't settle for corruption in the US by pointing at Brazil, Canada, etc. I'm raising hell about it here! Okay?
...
written by Guest, June 20, 2005
(quote)
"Ok, but I would like to add that if the government gives contract to private companies, there is also the potential for corruption! You cant say that just because it is private that corruption wont happen....the company could get the contract because of connections or maybe they overcharge the government which is also another type of corruption! "

Indeed. That's government affairs anyway. Where it's involved, there is potential for corruption. And a very high potential. As such, this should be avoided as much as possible. That's why I defend the government should not be building roads. It uses those contracts to do so. Roads should be built on the will of some people wanting to make a profit out of it. That would lead to most roads having economical importance. The only exception I make is for defense.
...
written by Guest, June 20, 2005
the only exception cant be defense.... you cant make schools a profitable institutions without making every person pay for their school (private school), or how do you make hospitals economical? What about roads, are you going to charge every car who uses it? People will be avoiding those roads as much as possible....plus if you consider that many people are working hard, earning barely enough how do you expect them to pay to get around on those roads.....i dont think roads should be private, i think this is one area where the government should pay a private company to build, but no charge people....now if you are using a highway, to get to another state or to a big city then ok.....
...
written by Guest, June 20, 2005
the only exception cant be defense.... you cant make schools a profitable institutions without making every person pay for their school (private school), or how do you make hospitals economical? What about roads, are you going to charge every car who uses it? People will be avoiding those roads as much as possible....plus if you consider that many people are working hard, earning barely enough how do you expect them to pay to get around on those roads.....i dont think roads should be private, i think this is one area where the government should pay a private company to build, but no charge people....now if you are using a highway, to get to another state or to a big city then ok.....
...
written by Guest, June 20, 2005
"the only exception cant be defense.... you cant make schools a profitable institutions without making every person pay for their school (private school), or how do you make hospitals economical? What about roads, are you going to charge every car who uses it? People will be avoiding those roads as much as possible....plus if you consider that many people are working hard, earning barely enough how do you expect them to pay to get around on those roads.....i dont think roads should be private, i think this is one area where the government should pay a private company to build, but no charge people....now if you are using a highway, to get to another state or to a big city then ok....."

That's it. The administration of a city must be done by governments. There is no way other than that. In addition, having cities divided into autonomous districts with different mayors (acting like big condos) would increase competition and lead to a more efficient government (but not at all. There are avenues in japanese cities where you pay to use them, and they work very well). But highways connecting different cities and states should be done by companies, with no government interference. And having highways costing to the people who really use it would be a good thing, for it's only the user who is paying for it, and not the entire society. That also deestimulates the use of cars (or trains in the case of railroads), and make the use of them more rational. If it gets too expensive, another company could build an alternate road and should be allowed to do that. It's not perfect, but there isn't so much space for abuse, since people can choose alternatives. If there is no alternative, that's an incentive for someone to offer it.

About the fact of people barely earning to live... in a market economy, that's rarely the case. See the case in Japan and US. And why not having profitable schools and hospitals? With adequate responsibility legislations, that can work well and serve as an incentive for these businesses to get better. Remember that one plants what you eat, not because he likes you, but because he wants to make money for himself. The same applies to school and hospitals. If we don't need an anti-hunger program, I don't see any need for health care or schools owned by government either. Yet those can work as a safeguard against fluctuations in the market, their use by government should be restricted.
REVOLUTION
written by Guest, June 20, 2005
It is time to do a revolution like Fidel Castro did. Send all these members from PT to the big wall and massacre them. It is ashamed the level of corruption in Brazil. The crowd should make justice with the own hands.
PT never more!
Listen revolution
written by Guest, June 20, 2005
Hey revolutionary Castro person, your comments make no sense and they will not resolve anything....Look shooting every PT member will not resolve corruption...The PT was perceived to be different from the other parties, but seriously they learned this corruption......instead of trying to change the style of politics in Brasilia they changed for the worst...but still justice needs to run its course and you cant convict them all but I would suggest going to this website to find out those who probably deserve to be in jaiL!

http://www.geocities.com/Paris/Opera/4700/main.html

I KNOW IT GEOCITIES BUT TAKE A SERIOUSLY OBJECTIVE LOOK!
the point is >>>>
written by Guest, June 20, 2005
is crazy for a magazine in america to talk about Brazil when we have the same s**t going on in America.


Is not about compare Brazil with America. We know that in some crazy away they are the same pool of corruption.



The point is

Go clean you ass first before going around telling people about their ass e
We live i
Re: the point is >>
written by Guest, June 20, 2005
The on-line magazine is directed toward people who are interested in Brazil. Why should you get your knickers in a bunch if people in the US take an interest in your country. Why should you be so upset that foreigners would take in interest in an article written by a Brazilian?

As I've said, I can understand defensiveness, since frequently ignorant and holier than thou Americans pop off about Brazil when they haven't a clue as to what they're talking about and are completely oblivious to just how screwed up their own nation is. When I see that, I try to make a point to comment. But that is not the case here. The article was written by a Brazilian. Much of the discussion above is merely commenting on the article and/or is a discussion with Brazilians regarding how they feel about politics in Brazil and foreigners sharing their views. Nothing is insulting toward Brazil. Indeed, many comments were complementary toward Brazils efforts to rid the country of its dreadful corruption. There is nothing for you to be defensive about in the comments above, unless you really want to be in the role of defending corruption, which for some inane reason you have placed youself by citing worldwide corruption as par for the course. What are we to infer from your rantings about corruption in other places? That corruption is A-OK? Oh, no your point is that foreign nations are corrupt therefore all discussion of corruption outside one's own boarders is strictly forbidden. Well, that's really a stupid point of vew. Indeed, I'll invite you to stick your point up your tight ass.

Listen, I don't claim that the US is paradise on earth. I'd be happy to talk trash with you about US corruption on a US fanzine site. I won't be insulted, nor will I tell you that you should "clean your ass first" before taking an interest in the dirty ass of the US, okay? I'd even appreciate the perspective of a foreign voice regarding just how dirty our ass is. But then again, I'm not a little nationalistic prick with a fragile ego like yours. I don't mind criticism of my country or the discussion of ideas. I'm big enough to take it.

Your point is NOT well taken. It is childish. It is shrill and bitchy. It is not logical or helpful toward a discussion of the author's article. By screaming that other countries are just as corrupt in their own special way does not refute the fact that Brazil is a dreadfully corrupt place. Perhaps you find that acceptable becuase other people do it too. I don't. I seriously doubt that you do either. Do you?
REVOLUTION
written by Guest, June 20, 2005
It is time to do a revolution like Fidel Castro did. Send all these members from PT to the big wall and massacre them. It is ashamed the level of corruption in Brazil. The crowd should make justice with the own hands.
PT never more!
The discussion is getting way off...
written by Guest, June 20, 2005
As a brasilian, I have faith in Lula...attitudes about corruption are slowly changing, but yet, they are changing in the public opinion.

Gradually, we will get there, to the point that corruption will not be tolerated by the public at large!

God bless Brasil.
Revolution
written by Guest, June 20, 2005
You must be eliminated from the earth's face.
Yes you do!!!!!!!!
written by Guest, June 20, 2005
You go around the world telling people how bad they are and how good you have going on ..The name of the game is propaganda my friend. Be a good player and for ones take the crap that in inside your country(USA)

Just big joke in the land of Hipocracy

LOLLL
I am shocked, shocked..
written by Guest, June 20, 2005
reminds me of the scene in casablanca where the police chief says he as shocked to find gambling in casablanca just as he receives the payoff....
Revolution
written by Guest, June 20, 2005
Enough is enough.
No, I don\'t!!!!!!!!!
written by Guest, June 20, 2005
I know the US does that ("go around the world telling people how bad they are and how good you have going on"), but some of us are critical of that. I am one of the biggest critics of that type of attitude from readers of this magazine. However, you have not seen that attitude on this particular message board in relation to this article. I understand your position, but your point is not well taken in this context.

I agree, the US is hypocritical in regards to many things. But, honestly, this article is a genuine article about Brazil. It's worth discussing. So why discuss it in a meaningful way, rather than pointing out irrelevant information about corruption in other countries? It's totally useless to do so.
...
written by Guest, June 20, 2005
Seriously, I can't believe that you are forcing me on the side of the guy who always is commenting that "Brazilians need to stop blaming others for thier problems." I understand that you are not blaming anyone for Brazil's corruption, but you certainly are excusing it and are not willing to even discuss it. Your point that other countries have corruption is correct, but a meaningless observation. Professor Ituassu is a Brazilan. Are you trying to say he's hypocritial by writing about Brazilian corruption? I can't believe you are that stupid. Are you saying that people in other nations are hypocritical in discussing Brazilian corruption? Well, that is also stupid, because people discuss the corruption of thier own countries also, including people in the US. You were able to find scores of articles regarding the issue. Why should you be offended that people interested in Brazil should sypmathize with Brazil and discuss the issue raised by a Brazilian? Just cool it and either join in the discussion or not. But the endless posts about corruption in other countries is not relevant to the article (at least not how you have presented it).
Re:The discussion is getting way off...
written by Guest, June 20, 2005
I agree with you, and guess what? I'm from the US (and I'm NOT saying that the US is any better, okay?).
Re:I am shocked, shocked..
written by Guest, June 20, 2005
Another completely useless and gratuitous comment.
Lula Approval Unaffected
written by Guest, June 20, 2005
Again, I'll note the story that "Recent corruption allegations did not significantly alter the approval rating of Luiz Inacio Lula da Silva in Brazil, according to a poll by Datafolha published in Folha de Sao Paulo. 36 per cent of respondents have a positive opinion of the president’s performance, a one per cent increase since early June."

So, apparently some are dancing on Lula's grave a bit too soon.
maybe ......
written by Guest, June 21, 2005
SMaybe some of the comments are not intend to say America is a bad place.

The position, maybe, is that Brazilians in general have this strange believe that only in Brazil corruption and impunity is the rule.

Everybody in America or in Brazil for the matter in a majority level are good hard working people that agree that corruption is wrong

One of the main problems is that most of the low-grade magazine in Brazil (VEJA and ISTO E) has a tendency of no giving the news.

They just express their bias views about any topic and don’t let people think. A real media expose different point of views and let the people to come out with their own conclusions.


T


Can you believe if news week goes around the country and print every single corruption case in America?? We probable would have a VEJA everyday of the week.

To work for the improvement of Brazil is one thing. To pray in the problems of Brazil to sell magazine and remove a X or Y candidate because they don’t like is just wrong



An American or someone that live here for a long time (Brazilian) you will understand that the amount of corruption and impunity here is big.


I’m sure millions of hard working people in Brazil should not be put in the same category.



You may say the name of the person that committed the crime. To include the rest of 180 million hard working Brazilians in the same pot is just wrong.

...
written by Guest, June 21, 2005
"To include the rest of 180 million hard working Brazilians in the same pot is just wrong."

True enough.
Banzai Corruption
written by Guest, June 21, 2005
I go back to Brazil. There, I can make easy money and bribe everybody and f**k the secretary.
Jefferson
written by Guest, June 22, 2005
By the way, this Jefferson is a goddamn crook who was caught red-handed. It looks like he may be casting aspersions to get himeslf out of the heat. Where's the proof other than this guy's claims?
Honesty, integrety, international respec
written by Guest, June 22, 2005
Why not reelect FHC? Even though perple are still upset by the problems he left Brazil with, Cardoso is the only president from either Brazil or the U.S. who managed to serve two terms and stil come out with these seemingly impossible political virtues intact. Too bad for Lula. He should have surrounded him with better people...
Re:Honesty, integrety, international res
written by Guest, June 23, 2005
A lot of people hate Lula and want to see him fail. Jefferson is not PT, and is not among the people with whom Lula surrounded himself. What "better" people are you talking about? Nothing has been proven yet. What does seem very clear is that Jefferson is a crook. Nothing else is clear at this point, except that Lula's government has made inroads into rooting out corruption and that a lot of people don't want him to succeed.
Honesty, Integrity, International Respec
written by Guest, June 23, 2005
This man is Bill Clinton. He can be reelect. He left the Country in an excellent situation. What Bush did? Only to make things worst. The economy is falling down, the international and domestic terrorism is still a problem. Let's bring back Bill Clinton.
All This Bickering!
written by Guest, June 23, 2005
Come on give me a HUG... I Love You Man!
Sou Brasileiro / I Am Brazilian
written by Guest, June 23, 2005
A Corrupçăo no Brasil é um vexame nacional que faz o país năo ir pra frente!

The Corruption in Brazil is a national embarrassment preventing the country from moving forward!
Lula\'s doing fine
written by Guest, June 23, 2005
Brazil is doing better economically than it did under Cardoso. Corruption existed during Cardoso, it just wasn't investigated and prosecuted the same as it is under Lula. Lula's doing fine. Forget Cardoso. LULA 2006!
DAMN RIGHT
written by Guest, June 23, 2005
LULA IN 2006 IS RIGHT ON!!!
Cardoso made so many mistakes with the economy, but that is not to say that Lula has made mistakes too. In fact I believe Lula has made more political mistakes than economic....BUT HE has my vote in 2006..... unless Senator Buarque runs for the presidency!
...
written by Guest, June 26, 2005
"Corruption existed during Cardoso, it just wasn't investigated and prosecuted the same as it is under Lula. Lula's doing fine. Forget Cardoso. LULA 2006!"

I have to agree, one of the reasons we're hearing a lot about corruptin as of late, is that the government is investigating and taking a stance against it. Who knows how this graft scandal will unfold, but it was the PT government who pushed the 2 year investigation that led to the arrests of over 100 IBAMA and State officials, including the sec. for the env. in Mato Grosso.

There is a clear message being sent out by Lula. Business as usual in Brasil WILL NOT BE TOLERATED. Now, he can't cure centuries of corruption over night, but he seems to be doing a damn fine job trying. IF, however, Lula is DIRECTLY implicated in the Mensalao vote buying scheme, well, then, the system is too broke to fix. However, I truly believe Lula is a man of integrity and this storm will pass him by.

Now to those who bring up the canucks as being EQUALLY corrupt, well, you're just too daft for words. Canadians have been falling all over themselves over a 240 million dollar ADscam corruption case which involves the Liberal government. It's costing MORE to investigate, than what was actually skimmed off the top for Liberal supporters. why? Because it doesn't happen that often - and everyone is gobsmacked that something like this could take place. Sure, there is corruption in every country but it is a matter of degree. So to compare these "developed nations" with Brasil with corruption whispered under the same breathe is just plain retarded. Brasil is in a class all by itself when it comes to corruption, kiddies - only now, does it look like someone is trying to do something about it.
...
written by Guest, June 26, 2005
Just leave the Canada and US corruption out of it is the point. It's irrelevant, man. Don't get all defensive. Let it go.
...
written by Guest, June 26, 2005
Just leave the Canada and US corruption out of it is the point. It's irrelevant, man. Don't get all defensive. Let it go.

The point made was that it is FACTUALLY irrelevant.
...
written by Guest, June 26, 2005
If you want to incite a bunch of nationalisitic ravings by defending the honor of US and Canada that you know is totally irrelevant to the story, go right ahead. But why bother?
...
written by Guest, June 26, 2005
No one needs to defend their country when it comes to corruption. It exists wherever you live. We all need to be on guard for it and stamp it out. This particular article is about Brazil. There's no point in arguing who has more or less corruption. If it can get people to the point, if it can get people to consider the issues raised in the article, I'm perfectly willing to concede that corruption is no better and no worse anywhere in the world. My ego is not so fragile that I need to argue about it.
Ranking
written by Guest, July 22, 2005
From Transparency International (European based):
Table 1: TI Corruption Perceptions Index 2004 (from least corrupt to most corrupt)
Country Rank, Country, 2004 CPI Score*
1 Finland 9,7
2 New Zealand 9,6
3 Denmark 9,5
Iceland 9,5
5 Singapore 9,3
6 Sweden 9,2
7 Switzerland 9,1
8 Norway 8,9
9 Australia 8,8
10 Netherlands 8,7
11 United Kingdom 8,6
12 Canada 8,5
13 Austria 8,4
Luxembourg 8,4
15 Germany 8,2
16 Hong Kong 8,0
17 Belgium 7,5
Ireland 7,5
USA 7,5
20 Chile 7,4
21 Barbados 7,3
22 France 7,1
Spain 7,1
24 Japan 6,9
25 Malta 6,8
26 Israel 6,4
27 Portugal 6,3
28 Uruguay 6,2
29 Oman 6,1
United Arab Emirates 6,1
31 Botswana 6,0
Estonia 6,0
Slovenia 6,0
34 Bahrain 5,8
35 Taiwan 5,6
36 Cyprus 5,4
37 Jordan 5,3
38 Qatar 5,2
39 Malaysia 5,0
Tunisia 5,0
41 Costa Rica 4,9
42 Hungary 4,8
Italy 4,8
44 Kuwait 4,6
Lithuania 4,6
South Africa 4,6
47 South Korea 4,5
48 Seychelles 4,4
49 Greece 4,3
Suriname 4,3
51 Czech Republic 4,2
El Salvador 4,2
Trinidad and Tobago 4,2
54 Bulgaria 4,1
Mauritius 4,1
Namibia 4,1
57 Latvia 4,0
Slovakia 4,0
59 Brazil 3,9

Worse than Namibia... And this ranking was made *before* the world took notice of the massive corruption of the petistas!...
As a note, Chile should be congratulated for jumping ahead of all other Latin American countries. Way to go, Chicago Boys!
End of discussion.

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