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Nobody's Clean. Brazil's Opposition Dirty Laundry Now Exposed. PDF Print E-mail
Written by Jared Goyette   
Friday, 13 January 2006

Brazilian senator Eduardo AzeredoThe corruption scandal that has dominated Brazilian politics for the last seven months has no party affiliation. President Lula's PT (Workers Party) is demoralized and will almost certainly suffer losses in this year's elections, but Brazil's most powerful opposition party, the center right PSDB (The Brazilian Socialist Democratic Party), is facing a growing scandal of its own. 

Thursday, January 12, Cláudio Mourão, a former campaign treasurer for the federal senator and former PSDB party president, Eduardo Azeredo, gave new testimony to federal investigators about a secret account or "Caixa 2" (account 2), that was used by Azeredo's campaign during his successful 1998 run for governor of the state of Minas Gerais.

Funds from this illegal account were allegedly used to shelter unregistered campaign donations, which in turn were funneled to Azeredo's campaign and to the campaign funds of dozens of his allies across the political spectrum. 

This was the fourth time Mourão gave public testimony on the case, with the last testimony occurring on the 13th of December. In the beginning of that month, the Federal Police were given a three-page document whose contents, if verified, could expand the case dramatically.

The document includes a list of public and private companies that donated to the illegal "Caixa 2" and another list of politicians who received funds from the clandestine account. 

As reported in the Brazilian magazine Carta Capital, a total of 140 politicians appear on the list, most of whom are affiliated with right wing and center right parties such as the PFL, which received US$ 600,000 (1.364 million reais) , the PTB, which received US$ 507 (1.153 million reais), and the PSDB itself, which received US$ 285 (647,000 reais).

34 PT members also appear on the list - they allegedly received donations in return for supporting Azeredo in the second stage of the election. The document shows a total of US$ 4.8 million (10.8 million reais) in illegal campaign donations.

The three pages conclude with the signature and stamp of Mr. Mourão, who as Azeredo's campaign treasurer was responsible for the management of all campaign funds. 

An initial evaluation of the document by the Federal Police showed no signs of fabrication, and Mourão has admitted that the signature and stamp that appear on the final page are both his. However, a suspicious political intrigue surrounds the source of the document, and it contains errors that raise questions about its authenticity. 

A detailed account of the document and the story around it is available in Portuguese at the website of Carta Capital (www.cartacapital.com.br) in an article by the writer Sergio Lirio.

As the article details, Nilton Monteiro, a lobbyist and former employee of Mr. Azeredo, handed the document to the Federal Police. Monteiro is also suing Azeredo in federal court for US$ 704,000 (1.6 million reais) in back pay, which provides an obvious context for blackmail.

Furthermore, Monteiro and Mourão were once close friends, and the two collaborated in an effort to retrieve back pay owned them by Senator Azeredo's campaign.

This raises the possibility of another scenario: Could Mourão have created the document with Monteiro while the two were still working together to persuade Azeredo to settle their debts? For now, speculative theories abound while federal investigators quietly work to reveal the facts. 

The politicians listed on the receiving end of the donations have, as expected, denied having received any such funds. Many have suggested that the document is counterfeit, and pointed to errors in which some politicians were listed with the incorrect political party. 

As for Senator Azeredo, he admitted that his campaign used a "Caixa 2" in August, shortly after the accusations first appeared, and resigned his post as president of the PSDB on the 25th of October.

At the time, this new document had yet to surface, and it is therefore likely that Azeredo will be asked to reappear at on-going congressional hearings, and also be asked to provide additional testimony to the Federal Police. 

Opinion polls show that in November's presidential elections, Brazilians will likely face a final choice between current President Lula, who is from the PT party, and a candidate from the PSDB.

During the last six months, the party chiefs of both the PT and PSDB were forced to resign after investigations had revealed their party's use of secret accounts and unregistered campaign transactions.

Since then, the Federal Police and Brazil's top election authority, the TSE (The Superior Electoral Tribunal), have implemented new measures to prevent the use of the "Caixa 2" in the 2006 elections. Campaign finance reform is certain to be a central topic in the election debates. 

As the scandal rolls on, the police continue to investigate, and emboldened journalists continue to dig-up new relations. As messy, painful and dirty as the process may be, Brazilian democracy continues to evolve. 

Jared Goyette scrapes by as a freelance writer in Salvador, Bahia Brazil. He can be reached at jaredmgo [at] gmail [dot] com

Comments (8)Add Comment
Very good !
written by Guest, 2006-01-14 05:32:01


This confirms that Lula was also ALWAYS corrupted despite what he claimed during 20 years, during and after the last elections.

His ethic...never ever existed !

Brazil is not a DEMOCRACY AND NEVER EVER WILL BE. Because corruption is in the blood of this society, at every level of daily life. Corruption is their breath, without it they die. Corruption is like a drug addiction, without it, you need it !

This said, the amounts mentionned in the article were just pocket money if you compare with the far bigger amounts that were used by Lula and his gang.

And Lula continues to proclaim his innocence and non knowledge of corruption. But was he not the most prominent leader of the PT party, before being elected ? So he knew then and know now !

The only consistency of Lula's life is LIES, MOIRE LIES AND EVER MORE LIES.

It also becomes quite clear as to the reasons the Congressmen dont want really to expell congressmen found guilty of corruption. Because if they did expelled the guilty, they are afraid that sooner or later their own time will come as they are corrupted too !
Wanna bet?
written by Guest, 2006-01-14 21:46:27
Bet what ?
written by Guest, 2006-01-15 08:15:45
Please be specific, so it will become clear who will win/loose the bet !
PSDB IS CENTER LEFT!
written by Guest, 2006-01-15 18:27:10

What a great stupidity to qualify as right-wing the Social Democratic Party of former President Fernando H. Cardoso.

Cardoso and all the leaders of this party have a clear left-wing past. Cardoso is the father of the Marxist-inspired theory of dependency, and, Jose Serra, another prominent leader of this party, has never been regarded as a right-wing politician.
A Fair Criticism: Bring More!
written by jaredmgo, 2006-01-16 06:35:48
(from Jared G.)
Drawing this lines is always somewhat arbitrary, especially in Brazil where politics is less openly ideologically and no politician would openly declare themselves to be "right wing", as the label is cultural unpopular and still associated with the dictatorship.

Of the PSDB-

Cardoso:
As president, Cardoso was so pro-market reforms that his political actions had little to do with the Brazilian left, regardless of the content of his elegant speeches or the books he wrote while he was a professor.

Serra:
Jose Serra presents himself as a non-ideological technocrat, but I think the commentators were right to consider him center-left. As he said in an interview with CartaCapital:

CC: O senhor foi de esquerda. Ainda ?
JS: Em poltica, uma coisa que aprendi, ali魡s, com dois golpes de Estado nas costas, porque fui duplamente exilado, exilado ao quadrado, que sempre houve um dilema: nem perecer nem trair. Porque, se voc n骣o est na poltica, perecer pode at᭩ ser algo sublime. Na poltica, no. Eu me mantenho nessa linha de nem perecer nem trair. Eu n�o tra os meus princpios originais e luto por eles: mais igualdade, melhor situa�o para todos, democracia, contra toda essa ordem de estupidez.

Of course, if Serra was so clearly from the left, it would not have been necessary to ask him that question. The same question could be have been directed at Cardoso

Alckmin:
The other likely candidate from the PSDB, enthusiastically advocates an alliance with the PFL, talks of "shocks of capitalism", is the choice candidate of the business elite, but lags behind in the polls to Serra. Alckim is center-right or right, but he has absolutely nothing to do with the Brazilian left.

PSDB:
The party presents two potential leaders- Serra, perhaps center left, and Alckmin, who is right or center-right in my guide book. The party is allied with the PFL, which is as openly right wing as you can get in this spectrum.

So what is the correct label for the party?

I suppose it depends on the politician,and who is doing the labeling. The past way to pull a cop-out would be to use "centrist", which may have been the best choice.

This is a good subject for debate though, and I hope more people will jump into the fray or write their own articles. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
...
written by Guest, 2006-01-23 16:20:01
Well, it has always surprised me that the Military dictatorship was labeled as right-wingӔ. Under their control, upwards of 60% of all industry in Brazil was under the control of the state. The state wanted to control ALL. Me thinks there is a lot of esplaining to do Lucy..
...
written by Guest, 2006-01-26 06:58:41
Lula haters like the first poster are funny. A story about corruption in other parties is proof of Lula's corruption? You're a nut case. Lulas one of the good ones!
...
written by Guest, 2006-01-28 06:58:48
This needs to be said, becuase the echo chamber of right-wing press tries to pin the problems on PT, when they're better than the right-wing parties. They still betrayed their members and their platform and should suffer for that. But let's not lose perspective. Brasil is full of corruption and the people need to be on guard at all times if it is to change. It's not like the US where mostly one party, the Republicans, are criminals. Corruption is democratic in Brasilian politics, if nothing else.

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