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Brazil Adds to Tally of Corruption Scandals With Investigation of a Former President Brazil Adds to Tally of Corruption Scandals With Investigation of a Former President
(about 3 hours later)
RIO DE JANEIRO — Federal prosecutors in Brazil said Thursday that they were opening a full investigation into claims of influence peddling by Luiz Inácio Lula da Silva, the former president whose leftist Workers Party is already struggling with a sweeping graft scandal involving some of the country’s most powerful political figures.RIO DE JANEIRO — Federal prosecutors in Brazil said Thursday that they were opening a full investigation into claims of influence peddling by Luiz Inácio Lula da Silva, the former president whose leftist Workers Party is already struggling with a sweeping graft scandal involving some of the country’s most powerful political figures.
The move by a special anticorruption unit of the Public Ministry, a body of independent prosecutors, advances a preliminary inquiry into whether Mr. da Silva, 69, used his influence on behalf of the construction giant Odebrecht, which relies heavily on financing from Brazil’s large national development bank, for contracts in Latin America and Africa.The move by a special anticorruption unit of the Public Ministry, a body of independent prosecutors, advances a preliminary inquiry into whether Mr. da Silva, 69, used his influence on behalf of the construction giant Odebrecht, which relies heavily on financing from Brazil’s large national development bank, for contracts in Latin America and Africa.
The expansion of the investigation increases pressure on both Mr. da Silva, one of Brazil’s most influential politicians, and his protégée and successor, Dilma Rousseff, who is facing calls of impeachment over a scandal in which former executives at the national oil company, Petrobras, said they accepted huge bribes for themselves and for leading figures in the governing coalition. The expansion of the investigation increases pressure on both Mr. da Silva, one of Brazil’s most influential politicians, and his protégée and successor, Dilma Rousseff, who is facing calls of impeachment over a scandal in which former executives at the national oil company, Petrobras, said they had accepted huge bribes for themselves and for leading figures in the governing coalition.
Separate from the investigation of Mr. da Silva, Odebrecht, one of Brazil’s largest corporations, is at the heart of the oil scandal. In June, the police arrested Marcelo Odebrecht, the company’s billionaire chief executive; he remains in jail in the southern city of Curitiba. Prosecutors accused Mr. Odebrecht and other senior executives of large construction companies of knowing that their companies were paying bribes to politicians.Separate from the investigation of Mr. da Silva, Odebrecht, one of Brazil’s largest corporations, is at the heart of the oil scandal. In June, the police arrested Marcelo Odebrecht, the company’s billionaire chief executive; he remains in jail in the southern city of Curitiba. Prosecutors accused Mr. Odebrecht and other senior executives of large construction companies of knowing that their companies were paying bribes to politicians.
Reacting to the latest development on Mr. da Silva, a spokesman at his institute in São Paulo expressed “surprise and tranquillity” over a full inquiry. “We are certain that the ex-president’s activities were legal,” said the spokesman, adding that the institute was providing documents sought by investigators. Reacting to the latest development on Mr. da Silva, the former president’s institute called the full investigation “unjustified,” saying Mr. da Silva was the target of “manipulations and arbitrariness” aimed at staining his image in Brazil and abroad.
Much as former leaders of the United States and other countries give speeches around the world, Mr. da Silva, who was president for two terms from 2003 to 2010, has leveraged his prominence into lucrative speaking engagements outside Brazil in recent years. On various occasions, Mr. da Silva has traveled abroad on private jets paid for by Odebrecht to countries where the company has contracts. Much as former leaders of the United States and other countries give speeches around the world, Mr. da Silva, who was president for two terms from 2003 to 2010, has leveraged his prominence into lucrative speaking engagements outside Brazil. On various occasions, he has traveled abroad on private jets paid for by Odebrecht to countries where the company has contracts.
Odebrecht denied any wrongdoing in a statement, contending, “The ex-president did exactly what foreign presidents and ex-presidents have done when promoting the business of their respective countries.” A spokeswoman for Odebrecht did not respond to a request for comment. A spokeswoman for the Public Ministry said investigators were focusing on Odebrecht’s dealings in Panama, Venezuela, Cuba and the Dominican Republic, in addition to some unspecified African countries.
Odebrecht denied any wrongdoing in a statement, contending, “The ex-president did exactly what foreign presidents and ex-presidents have done when promoting the business of their respective countries.”
As Brazilians absorb revelations from an array of scandals that are unfolding simultaneously, Mr. da Silva is far from being the only prominent politician to come under greater scrutiny, reflecting how figures across the ideological spectrum are being put on the defensive.As Brazilians absorb revelations from an array of scandals that are unfolding simultaneously, Mr. da Silva is far from being the only prominent politician to come under greater scrutiny, reflecting how figures across the ideological spectrum are being put on the defensive.
For instance, this week the police searched the properties of another former president, Fernando Collor de Mello, seizing more than $1 million in cash and vehicles, including a Ferrari, a Porsche and a Lamborghini, as part of their investigation into whether Mr. Collor was involved in the Petrobras graft scheme.For instance, this week the police searched the properties of another former president, Fernando Collor de Mello, seizing more than $1 million in cash and vehicles, including a Ferrari, a Porsche and a Lamborghini, as part of their investigation into whether Mr. Collor was involved in the Petrobras graft scheme.
Mr. Collor, 65, who is now a senator, resigned as president in 1992 during a scandal in which he was accused of condoning an influence-peddling scheme operated by his campaign treasurer.Mr. Collor, 65, who is now a senator, resigned as president in 1992 during a scandal in which he was accused of condoning an influence-peddling scheme operated by his campaign treasurer.
Another powerful figure, Eduardo Cunha, the conservative speaker of the lower house of Congress, was accused Thursday of soliciting a $5 million bribe from a contractor seeking business with Petrobras. Mr. Cunha, who has been weakening the Workers Party’s governing coalition, rejected the accusation, calling the former executive who made it “a liar.” Another powerful figure, Eduardo Cunha, the conservative speaker of the lower house of Congress, was accused Thursday of soliciting a $5 million bribe from a contractor seeking business with Petrobras. Mr. Cunha rejected the accusation, calling the former executive who made it “a liar.”