• Categories
  • Archives

Now, President’s Son Is Latest Suspect in Brazil’s Corruption Scandal

There seems to be no end to the barrage of accusations against Brazilian President Luiz Inácio Lula da Silva’s administration, his Workers Party and now his family, more specifically his eldest son, Fábio, a true history of rags to riches.

Brazil’s Sunday press questions how the President’s 30-year-old son, Fábio went from being virtually unemployed to having a fortune estimated in several million dollars in the past two years.


The weekly magazine Veja, which had previously exposed several close aides of Mr. Lula da Silva who were forced to resign, published a five-page expose on the business dealings of the younger da Silva.


í‰poca magazine and Jornal de Brasí­lia also have stories contending that the corruption allegations that have plagued Lula’s administration in recent months are now reaching the President himself.


Lula’s son, a biologist earned a living teaching English and computer classes until his father took office, reports Veja.


But in December 2003, when Lula da Silva had been in office for one year, Fábio and two partners started three companies to provide public relations services and produce video games. These businesses are now worth 5 million reais, approximately 2 million US dollars, according to the magazine.


The start-up capital for the businesses, Veja indicates, came entirely from soft loans extended by telecommunications company Telemar in which state-owned development bank BNDES has a 25% stake. Public pension funds, meanwhile, hold a 19% stake in the telecom firm.


Telemar confirmed its partnership with the president’s son but told Veja there was nothing illegal about the arrangement.


Media reports also raised questions about links between some public Telemar pension funds and banks close to Lula’s ruling Workers Party (PT).


The PT has been battered by a wave of corruption allegations in recent weeks.


Education Minister Tarso Genro was elected the new head of the PT early Sunday, replacing José Genoí­no who resigned amid mounting corruption allegations.


Mr. Genoí­no’s resignation is believed to have been triggered by the arrest last Friday night of PT leader José Adalberto Vieira da Silva, an adviser to José Nobre Guimarães, Genoí­no’s brother and fellow member of the PT’s national committee.


Vieira da Silva was arrested at the São Paulo airport when he was unable to explain the origin of 200,000 reais (approximately 85,000 US dollars) in cash he was carrying in a briefcase and another 100,000 US dollars he had stuffed in his underwear.


Corruption allegations had previously forced PT secretary-general Sí­lvio Pereira and treasurer Delúbio Soares to resign.


The charges also forced the resignation in late June of presidential chief of staff José Dirceu, Lula’s right-hand man in government and close associate of some 20 years.


“The Workers Party does not buy and does not pay Congress members,” said Mr. Genoí­no on resigning adding, “we have made mistakes…but we don’t practice irregularities, we don’t commit illicit activities”.


Until now the Brazilian president has remained above suspicion, but in an opinion poll published on Saturday 55% of those questioned believe President Lula da Silva was aware of the money and bribes scheme and did nothing or very little to stop it.


This article appeared originally in Mercopress – www.mercopress.com.

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Converted Tanker Boosts Brazil Offshore Oil’s Output

Petrobras, Brazil's government controlled multinational oil corporation, took a major step this week to ...

In Brazil, Spanish Will Do

So what is it about Brazilians that make them understand Spanish without a hitch? ...

Brazil’s Giovanna Shoes Discovers the Arab Market

The shoes manufacturer Sandálias Giovanna, from the southeastern Brazilian state of Minas Gerais, is ...

Freedom of Press Is More Fiction than Fact in Brazil

Since Brazilians enacted their democratic Constitution, in 1988, the law of their country has ...

Brazil’s Central Bank Survey Forecasts Weaker Dollar

In the view of the 100 market analysts surveyed by Brazil’s Central Bank (BC) ...

Brazilian Gets ‘Third-World Nobel’ for Chronic Pain Study

Scientists from Brazil and India have been awarded the first Trieste Science Prizes in ...

Anthony Garotinho

Hunger Strike, Oil-Dirty Hands, Blame the US…Populism Is Back in Brazil

"(As) a way of protest, I begin…a hunger-strike as a last resort in defense ...

Brazil Expecting a 5.6% Inflation Rate in 2005

The forecast presented by Brazilian analysts and financial consultants for the Broad Consumer Price ...

Brazil Seeks International Pacts to Fight Corruption

By the end of 2006, the Brazilian government intends to negotiate and sign judicial ...

In Brazil See-Saw Is Up While Lula Ponders Whether to Run Again

Latin American markets strongly recovered from weakness yesterday, on a Brazilian rally. Political tensions ...