Brazilian Federal Police Report Urges Indictment of Lula’s Former Minister

Brazzil Magazine covers

A Brazilian Federal Police report strongly recommends a former minister and close advisor of President Lula da Silva be indicted for taking undue advantage of his position to discredit a witness who accused him of links to corruption.

According to Brasí­lia judicial sources quoted Monday, September 11, in the press, former Finance minister Antonio Palocci, much admired for his command of the economy and who stepped down last March in the middle of an alleged corruption scandal, illegally obtained and leaked bank records of a man who accused him of active and regular participation in sex and alcohol orgies at a mansion in the country’s capital.

The five months investigation compiled in a 2.000 page report was submitted Monday to a federal judge hearing on the matter.

Francenildo Costa, who was the caretaker and watchman of the mansion, alleges that Mr. Palocci not only participated with other civil servants, businessmen and prostitutes in the "wild parties," but was also involved in business and private interest dealings which included associates from the time he was an elected mayor in Ribeirão Preto, an industrial city close to São Paulo.

Following Costa’s revelations to a local newspaper details of his bank account were leaked to the media in an effort to show he had been bribed to discredit Palocci who flatly denied having ever visited the mansion.

The bank account was in the Caixa Econômica Federal, a savings institution directly controlled by the Finance ministry, and Caixa’s then-chief executive, Jorge Mattoso, acknowledged to police that Palocci had access to the illegally obtained bank summary.

Already facing other allegations of corruption, Palocci resigned last March amid the uproar over his apparent abuse of power in the Costa matter.

In addition to the former minister, the Federal Police report urges prosecution of former Caixa boss Mattoso and journalist Marcelo Netto, a one-time press aide to Palocci.

Palocci is currently campaigning for a Congressional seat in October first elections for the Workers Party of President Lula da Silva who is running for re-election.

Tags:

You May Also Like

Brazzil Magazine covers

Manhattan Plays Brazil’s Forró

Forró is not only for Brazilians anymore. You can go to your local megastore ...

Brazzil Magazine covers

Havana Threats Against Their Families Made Boxers Give Up Defecting in Brazil

Cuban boxers Guillermo Rigondeaux, 26, and Erislandy Lara, 24,both world champions, changed their mind ...

Brazzil Magazine covers

Brazil Cuts Interest Rates to Record Low 8.75%

The BC, Brazil's Central Bank, lowered on Wednesday, July 22, the benchmark Selic rate ...

Brazzil Magazine covers

Brazil Lends Petrobras US$ 13 Billion to Fund Its 5-Year, US$ 174-Billion Plan

BNDES, Brazil's National Bank for Economic and Social development, will lend 25 billion reais ...

Brazzil Magazine covers

One Year Later Relatives of Brazilian Slain by London Police Feel no Closure

Family and friends of a Brazilian man who was mistaken by London police officers ...

Brazzil Magazine covers

With 200% Credit Card Interest Rates Brazil Bracing for 12.5% Prime Rate

The Brazilian Central Bank’s Monetary Policy Committee (Copom), which sets the country’s basic interest ...