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Brazil’s Ruling Party Diverted US$ 4.5 Million from Bank of Brazil and Lula Is in Danger

Brazilian opposition leaders announced that President Luiz Inácio Lula da Silva will be included in the months-long corruption probe, following revelations that money diverted from a government managed bank funded a network of illegal payments by the ruling Workers Party, PT.

"We found the trail by which money from government ended as PT’s slush funds. Clearly it shows how public funds were used for private interests," said Friday Senator Alvaro Dias from the opposition Brazilian Social Democracy Party (PSDB).

Senator Dias demanded that evidence of irregularities uncovered by the Congressional Investigation Committee be immediately presented to the Attorney General’s office, so prosecutors can begin a criminal investigation of Lula’s administration.

Based on the findings of the legislative committee investigating corruption allegations, 10 million reais (approximately US$ 4.5 million) were diverted from the state-run Banco do Brasil to the ruling party PT.

The diversion of funds was announced Thursday by Lower House member Oscar Serraglio who heads the committee investigating the alleged PT network for financing political campaigns and ensuring votes in Congress.

Banco do Brasil has acknowledged that last October it opened an internal investigation to probe the diversion of funds "loaned" to an advertising agency linked to the PT.

"We discovered that the loans were part of an operation to divert money from the bank to PT through public relations expert Marcos Valério," indicated  Serraglio.

Valério revealed before a Congressional committee that during 2003 and 2004 he collected the equivalent of US$ 22 million for PT treasurer Delúbio Soares, part of it "loaned" through the Bank of Brazil.

Opposition leaders said that following four months of investigations, they had finally found the evidence they were looking for: evidence that financial irregularities were not limited to illegal campaign financing, as the PT has repeatedly contended.

"The evidence shows diversion of public funds to benefit the ruling party. Now, all President Lula administration officials are under suspicion," said Senator Arthur Virgí­lio do Carmo from the opposition PSDB.

Senator Alvaro Dias said the opposition so far had focused its attacks on the PT and had been lenient towards Lula, but the new revelations "have shown a completely new picture".
Folha do Sao Paulo reports that a close presidential advisor admitted President Lula was "concerned" because most probably the conclusions from the Congressional investigation committee are "truthful."

However he insisted President Lula was unaware of the illegalities and blamed PT treasurer Soares for the slush fund network operation.

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

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  • Show Comments (3)

  • Guest

    FUN,FUN and more FUN
    Funny,
    Why everybody is so upset with corruption scandals in that damn country?

    Corruption is endemic in Brazil and it is the national pass-time of Brazilian politicians and some other high placed SOB’s.

    Whining just because US$ 4.5Mil just gone up in smoke?

    Go check what did NOT transpired yet about corruption schemes.How much is going silently to Swiss accounts instead of Welfare?
    Nice and cozy, isn’t it ?
    Don’t you guys know better?

    US$45 or whatever amount of money stolen from you (the people who pay taxes) is NOT a real concern of the brazilian people.

    The major concern is the eventuallity the government closing down the major soccer fields, setting up beach taxes (no tax paid, no beach .Period.) and stop the beer flow and just to wrap it up forbid carnival.

    If such happens then I’ll see a REAL bloodshed taking over the country.

    The brazilian people doesn’t have enough brain to look and see what really is going on around them.
    Basically they are stupid and brain-dead.

    They can’t see farther away than the glass of beer they are holding in their shaking hands. But then, who cares? Let the politicians have a good time using the tax payer’s money. YOUR money.,Dumbo!

    And the best(wost) of all, no matter who will be next “President”, things will NOT going to change unless you guys stop drinking beer, crank up what is left alive of your brain and start to challenge the “status quo” then you’ll see better days.But then again, fat chance, right?

    You have tested all the political avenues when electing presidents no matter who NONE worked out for good no matter what party the guy came from,, PT,PSD,PTB,XYZ,SOB .. etc.

    I just wonder if the current “President” will be re-elected as no alternative option is at hand.FUN,FUN,FUN.

    The current president was elected without a hint of the English language, then there is no reason to teach English for the future diplomats says the Genius.

    BULLSHIT. This demonstrates that your President is…… (you fill out the dotted line.

    Like man, you deserve every bit of shit you eat due to the inactivity from your part.(the people).

    I’m NOT advocating a revolution, take down the Governent by force or any other means whatsoever.
    Let this be well understood.
    That’s is NOT the way to make your country a better country.

    Perhaps I’m teaching the Gospel to the Pope but heck, writing these lines was just FUN,FUN and FUN.

    Fear not as I’ll be back pretty soon.

  • Guest

    Corruption\’s nothing new.
    Corruption is nothing new to Brasil and everyone had to know that the shifty Lula would be in on it. Wonder if his communist buddies Chavez and Castro will bail him out? How much did Lula get from Chavez during the presidential campaign?
    It was interesting while watching TV coverage seeing all the old Soviet Union flags and shirts mixed if with the Brazilian flags. Is this what Brazilians want? Wake up–communism failed and socialism is failing all over the world(look what is happening in France). Democratic society is not perfect but an educated people who self determine typically have a more fair society.
    Before you blame the US and Bush–look at what your own elites and government are doing to keep people down. Throw the bums out and elect men and women of character.
    God bless Brasil.
    T3

  • Guest

    Stupid guy…..
    …what does your stupid comments do…in answer to a brazilian corruption article ???????

    Do Brazilians want now to control the Mexican democracy ???????

    All those people who do not share your views….are enemies and should be expelled from their own countries….that bare not even yoiur country ?????????

    Come on !!!!!!

    The only people who starve Latin American citizens…..are the elites and politicians…that YOU elected !!!!!!

    It is why Brazil has the world worst wealth inequality…..after Sierra Leone !!! Nothing to be proud of ! Nothing to do with any foreign nation !!!!!

    You are quite anti democratric and no doubt you regret the good old times when you were under military regime.
    You could do anything you wanted…as long as you were with the junta !!!!! Otherwise…..jail or worse were the only place…. for those who expressed different views……loudly !!!!!!!

    Why dont you revolt against your own elites and politicians who are corrupted to the roots…Lula and his gang even deeper than previous governments ?????????

    The people you elected and the decisions they have taken during the last 50 years…is reflected in your today’s sad reality !!!!

    Total mismanagement, lack of accountability, deep corruption at all levels, wealth inequality, lack of education, healthcare and lack of infrastructure, housing, poverty and hunger are the results of their accomplisments ! Nobody elese is responsible. Always too easy to say…it is because of others !!!!! NOOOOOOOOOO…..

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