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:

Ads

You May Also Like

Brazil Kisses the IMF Goodbye

Brazil’s secretary of the Federal Treasury reaffirmed what the Finance Minister had already announced: ...

Brazil’s Supreme Sides with Indians Ousted from their Ancestral Lands

Brazilian Supreme Court’s (STF) Commission on Jurisprudence denied the request of the National Agriculture ...

Brazil Joins 40-Country Network to Fight Bird Flu

Beginning next week, bird flu specialists from 40 countries will be linked through an ...

How a Community of Brazilians Displaced by Dams Is Coping

From the capital city of Paraí­ba, João Pessoa, in the Brazilian Northeast, I traveled ...

Brazil Has 160 Organizations to Fight Racism. 75% Have no Money or Personnel

The organizations that promote racial equality in the Brazilian states and municipalities are facing ...

Brazil: Landless Are Restless

A festering situation that so far seems not to have attracted attention internationally is ...

This Brazilian’s Passion for Flowers Bloomed into a Prosperous Business

Flower grower Eulália Farrath manages a flower and ornamental plant production farm in the ...

Pirenópolis: The Rural Colonial Charm of a Brazil’s Capital Neighboring Town

Passing the gate that leads into the city of Pirenópolis, one can get the ...

Brazil Wants to Use Sports for Social Improvement

Within 45 days Brazil’s National Sports Policy will be defined and officially approved, according ...

Brazil, a Giant with Too Much Fat and Too Little Muscle

Brazil, the largest economy in Latin America, is in dire need of structural reforms ...