8.12.2005

Lula Speaks

Excuse the comparison, but I've been wondering for awhile if Brazilian president Luiz Inacio Lula da Silva would stay above the fray throughout Brazil's PT corruption scandal, a la Reagan during Iran Contra. I had my doubts, and now a former ally has come out and said that Lula indeed was aware of the misdeeds:
"Lula was in the next room. He knew we were negotiating numbers," former Liberal Party head Valdemar Costa Neto told Epoca magazine in an interview. The Liberal Party is an ally of the Workers' Party.

He said Lula was aware he negotiated 6.5 million reais in off-balance-sheet campaign funding with former Cabinet Chief Jose Dirceu and ex-ruling party Treasurer Delubio Soares.

"Lula, Jose Dirceu and Delubio are part of the same family. You can't just crucify one of them," said Costa Neto, who resigned from Congress on August 1 after admitted to having taken the irregular funding.
Wow. This is a brutal revelation, especially in light of Lula's recent comments:
"Among 180 million Brazilians, there is no one, neither man nor woman, with the authority to lecture me about ethics, morals or honesty," [Lula] said in a speech here last week. "In this country, the person who can debate ethics with me has yet to be born."
Thiw would be a huge blow to the President, who in recent polls was predicted to lose the 2006 election in a run-off.

Lula addressed the nation this morning, apologizing for the scandal and providing a bit of stability to the real, which had devalued by 3 percent in the midst of investor cautiousness because of the scandal. It appears that Lula will not be able to simply grin and bear it while his underlings take the heat.

Comments:
Randinho,

The article on the real is here.

Agreed that Lula is innocent until proven guilty. However, I see more accusations coming out soon and it will be very difficult for Lula to come out clean. Would impeachment occur, it would be a political disaster because the succession would go to the President of the Congress. The current president, Severino Cavalcanti of the Partido Progressista, is supposed to be a lunatic. This will have reprecussions throughout the region, for so many reasons.

As for the Lula quote, I remember that you blogged on the Rohter article and I should have referenced you. A belated hat tip.
 
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