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Q&A: Brazil's 'big monthly' corruption trial Q&A: Brazil's 'big monthly' corruption trial
(3 months later)
Dozens of defendants went on trial at the Brazilian Supreme Court on 2 August in what was billed as one of the biggest political corruption scandals in the country's recent history.Dozens of defendants went on trial at the Brazilian Supreme Court on 2 August in what was billed as one of the biggest political corruption scandals in the country's recent history.
The case has been closely watched by the governing Workers' Party (PT) and former President Luiz Inacio Lula da Silva, who remains a key figure in Brazilian politics. The judges considered allegations that, between 2003 and 2005, politicians and officials diverted public funds to buy political support for the government of the then President, Luiz Inacio Lula da Silva. The scheme became known as "mensalao" or the "big monthly" allowance.
The judges have been considering allegations that, between 2003 and 2005, politicians and officials diverted public funds to buy political support for Lula's government. The scheme became known as "mensalao" or the "big monthly" allowance. Some 25 defendants were convicted, among them several former senior members of the governing Workers Party (PT).
BBC Brasil explains the background:
What exactly was the "mensalao" scandal?What exactly was the "mensalao" scandal?
It was an alleged scheme that embezzled public funds to buy political support for the then Lula government and to pay off debts from election campaigns. The central accusation is that politicians from coalition parties were given large payments each month to support the minority government led by the Workers' Party. The scandal nearly caused the Lula administration to collapse. It was an alleged scheme that embezzled public funds to buy political support for the then Lula government and to pay off debts from election campaigns. The central accusation was that politicians from coalition parties were given large payments each month to support the minority government led by the Workers' Party. The scandal nearly caused the Lula administration to collapse.
How did the affair come to light?How did the affair come to light?
The scandal broke in 2005 when a congressman publicly accused the PT of paying the equivalent of $10,000 (£6,400) a month to political allies dating back to 2003. The allegation led to the downfall of several members of Congress and senior members of the government. Jose Dirceu, who was Lula's chief of staff, was accused of being the mastermind behind the scheme. He resigned and a few months later was also impeached by Congress.The scandal broke in 2005 when a congressman publicly accused the PT of paying the equivalent of $10,000 (£6,400) a month to political allies dating back to 2003. The allegation led to the downfall of several members of Congress and senior members of the government. Jose Dirceu, who was Lula's chief of staff, was accused of being the mastermind behind the scheme. He resigned and a few months later was also impeached by Congress.
Why is it back in the news after several years? What happened at the trial?
On 2 August, 38 people went on trial in one of the biggest cases to be heard in Brazil since the end of the military dictatorship in 1985. (One case was subsequently referred back to a lower court.) The trial was expected to last at least a month. It took a year to prepare the case and another until the judges agreed to hear it. Statements have been taken from more than 600 witnesses. On 2 August, 38 people went on trial in one of the biggest cases to be heard in Brazil since the end of the military dictatorship in 1985. (One case was subsequently referred back to a lower court.) It took a year to prepare the case and another until the judges agreed to hear it. Statements were taken from more than 600 witnesses.
Where is the money alleged to come from? Twenty-five out of 37 defendants were convicted, among them Mr Dirceu. He was sentenced to 10 years and 10 months in jail.
According to the Attorney General's office, the money came from fictitious loans and from the government's advertising budget. The prosecutor says banks and advertising agencies helped to make the payments, in exchange for receiving government contracts and benefits. What were the defendants specifically accused of ?
What are the defendants specifically accused of ? The defendants, including politicians and executives, faced accusations ranging from embezzlement and corruption to conspiracy, money-laundering and misusing public funds. Prosecutors say that Mr Dirceu and other leaders of the PT, together with bankers and publicists, formed a "criminal organisation" that used public and private funds to buy political favours.
The 37 defendants, including politicians and executives, face accusations that range from embezzlement and corruption to conspiracy, money-laundering and misusing public funds. Prosecutors say that Mr Dirceu and other leaders of the PT, together with bankers and publicists, formed a "criminal organisation" that used public and private funds to buy political favours. What did the defendants say ?
What do the defendants say about the charges? Some admitted receiving money, but denied the payments were made to guarantee political support. Instead, they said the scheme was only a way of paying electoral campaign debts. Although illegal, as the debts were not made public, the practice is common in Brazilian politics. Other defendants deny ever giving money to secure support from other parties.
Some admit receiving money, but deny the payments were made to guarantee political support. Instead, they say the scheme was only a way of paying electoral campaign debts. Although illegal, as the debts were not made public, the practice is common in Brazilian politics. Other defendants deny ever giving money to secure support from other parties.
What about Lula?What about Lula?
Lula himself is not directly implicated, and at the time of the original scandal told the Brazilian people he felt "betrayed". He later downplayed the accusations, saying the PT had behaved in the same way as other parties. Lula himself was not implicated, and at the time of the original scandal told the Brazilian people he felt "betrayed". He later downplayed the accusations, saying the PT had behaved in the same way as other parties.
What are the wider political implications? What was the wider significance of the trial?
This case has attracted major coverage in Brazil as it is seen as hugely sensitive for the PT, which has held the presidency since 2002. The party portrayed itself for many years as above the kind of corruption allegations that are routine in Brazilian politics. The trial could not have come at a worse time for the PT with elections for mayors and councillors due across the country in October. There was also huge controversy earlier this year when it was alleged that Lula had tried to influence the court to delay the case until after the vote, an allegation he denied. This case attracted major coverage as Brazilians watched to see if those found guilty of corruption would be held accountable and the country's long history of impunity ended.
Will President Dilma Rousseff's government be affected? It was also seen as hugely sensitive for the PT, which has held the presidency since 2002. The party portrayed itself for many years as above the kind of corruption allegations that are routine in Brazilian politics.
President Rousseff herself is not implicated at all, and as most of the politicians in the case are not currently in government, her administration is not directly exposed. Was President Dilma Rousseff's government affected?
President Rousseff was not implicated at all, and as most of the politicians in the case are not currently in government, her administration was not directly affected.
What does the scandal say about Brazil's political system?What does the scandal say about Brazil's political system?
It highlights some of the inherent weaknesses in Brazil's multi-party democracy where parties draw extensively on private funding to contest very competitive elections. And as it is hard to secure an overall majority, the resulting coalition can sometimes involve as many as 10 or 11 parties. When Lula won the presidency he had to craft a government with allies from both the right and left, paving the way for the kind of corruption allegations at the heart of Mensalao. It highlights some of the inherent weaknesses in Brazil's multi-party democracy, where parties draw extensively on private funding to contest very competitive elections. And as it is hard to secure an overall majority, the resulting coalition can sometimes involve as many as 10 or 11 parties. When Lula won the presidency, he had to craft a government with allies from both the right and left, paving the way for the kind of corruption allegations at the heart of Mensalao.