Brazil’s Finance Minister Seems Convincing While Defending Himself from Kickback Charges

Brazilian Minister of Finance, Antonio Palocci, held a press conference over the weekend to explain that a controversial contract for garbage collection was made before he became mayor of Ribeirão Preto.

Palocci has been accused by a former aide of receiving payments from the Leão & Leão company, which had a contract to collect garbage in Ribeirão Preto, a city in the state of São Paulo where Palocci was mayor (2000-2002).


Palocci explained that according to the accusation, companies that won city contracts paid kickbacks to local authorities.


“I think it is very relevant to note that the money, according to the accusation, was paid by companies when they won contracts. Well, these contracts were signed before I became mayor,” said the minister.


Palocci said he was not criticizing former governments. “All I am saying is that I did not sign the contracts.”


However, Palocci did admit a no-bid contract worth US$ 57,140 (140,000 reais) while he was mayor.


“We had heavy rains in the city and had to clear streets of fallen trees. We just did not have time to go through a competitive bidding process. It was an emergency,” he explained.


Resignation


Palocci, strongly denied charges made by a former aide, Rogério Buratti, that he received US$ 21,000 (50,000 reais) in monthly payments from a company contracted to collect garbage when he (Palocci) was mayor of Ribeirão Preto. According to Buratti, Palocci passed the money on to the PT.


“I categorically and vehemently deny these charges. I never received or collected funds for the PT while I was mayor or at any other time,” declared the Minister.


Palocci explained that he had spoken to Brazilian President Luiz Inácio Lula da Silva about the matter, and the President had decided that he was to remain at his post.


“President Lula has decided that the accusations by Buratti will not affect my position and I will continue to be Minister of Finance,” said Palocci.


Economy


During the press conference on Sunday, Palocci, was asked if corruption charges made by a former aide could have a negative impact on Brazil’s economy. The Minister answered that today’s economic agents know the difference between political and economic processes.


“It was not always that way. In the past, a political crisis could quickly cause problems in the economic area. But not today because of two reasons. First, our fundamental economic situation is very solid. We have a strong position in foreign trade. In second place, we have a sound democracy in Brazil,” declared the minister.


Agência Brasil

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

Uribe Asks Brazil’s Lula: Venezuela Can Sell to the US, Why Can’t We?

During his visit to Brazil’s capital BrasÀ­lia, the President of Colombia, Àlvaro Uribe, asked ...

Brazil President Steps Up International Offensive Meeting Obama & Cameron

The president of Brazil, Dilma Rousseff, is scheduled to meet with her US peer ...

Brazil and Argentina Ban US Dollar in Their Trade Transactions

Mercosur’s leading members Argentina and Brazil have agreed on a pilot Project to eliminate ...

Brazilian lamb farm

Brazilian Lamb Meat to Get Good Quality Seal

Brazilian consumers of lamb meat in the southernmost Brazilian state of Rio Grande do ...

US, EU, China Discuss Food Security in Brazil

Today the First World Congress on Food Security gets underway in São Paulo. Brazil ...

Brazil’s First Lady Couturier a Hit in Paris, NY and Riyadh

The same Brazilian stylist who dressed First Lady Marisa LetÀ­cia da Silva on the ...

Brazil Takes US to WTO over Orange Juice Surcharges

The Brazilian government has decided to ask the World Trade Organization (WTO) to analyze ...

Women are getting a bigger role in Brazilian scientific research

One Third of Brazil’s Scientific Research Is Done by Women

Thirty two percent of the current Brazilian scientific production is made by women. This ...

You Wont Know Brazil Before You Learn to Say Picanha

So, you think a cook out, an open-air barbecue is the tops? I seem ...

In Brazil Nepotism Never Dies

There are an estimated 20,000 "positions of trust" in the Lula administration and according ...