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Corruption
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Brazil corruption proves hard to fight
By Jonathan Wheatley in São Paulo
Published: April 24 2005 19:45 | Last updated: April 24 2005 19:45
brazil flagCorruption is back in the news in Brazil. As happens every few months, allegations have surfaced against a prominent figure in public life. This time it is Romero Jucá, the social security minister, accused of falsely obtaining subsidised loans and misappropriation of public funds. He is unruffled. “This doesn't bother me. I'm sleeping easy,” he told reporters this week.
Nothing has been proved against Mr Jucá and his relaxed attitude may well reflect his innocence. But innocent or guilty, such allegations against Brazil's rich or powerful rarely cause them much concern. Corruption is a fact of daily life and the chances of being punished for it are close to zero.
Over the past two years the comptroller-general's office (CGU), created in 2001, has conducted audits at 741 of Brazil's 5,500 municipalities, chosen at random. It found serious irregularities at 90 per cent of them, and some irregularity in all. Waldir Pires, who heads the CGU, says more than 20 per cent of public spending is lost to corruption. Counting only money transferred by the federal government to states and municipalities, that amounts to theft of more than R$18.5bn (US$7.3bn, €5.6bn, £3.8bn) last year.
In 2002, Cláudio Abramo of Transparência Brasil in São Paulo, the local branch of corruption watchdog Transparency International, carried out a survey of corruption in the city of São Paulo at the city's request and with World Bank funding. It found systematic misappropriation of public money.
Instead of acting on the report, the city shelved it. “To do anything would mean offending innumerable interests,” Mr Abramo says.
Despite its impact on Brazil's inadequate public services, there is little outcry against corruption. Indeed, “rouba, mas faz” “he steals, but he gets things done” is a term of approval applied to many of Brazil's most successful populist politicians. Most of the blame for this lies squarely with the judicial system. “We have excellent laws,” says Nicolao Dino, president of the national association of public prosecutors in Bras´lia. “The problem is implementation.” Courts are slow and defendants may appeal through several stages. The higher an appeal goes, says Mr Dino, the closer to power judges become.
The possibility of almost endless appeals means few powerful defendants have much to fear. “The rights of the defendant have to be protected,” says Mr Dino, “but not at the cost of a much greater social evil, which is impunity.”
He points to two worrying developments. One is a measure under review by the Supreme Court to restrict the investigative powers of public prosecutors. The other is a bill under discussion in Congress that would amplify the right of those in public office to be tried only in higher courts.
Yet there are grounds for optimism, too. A partial reform of the judiciary, enacted last year, introduced the concept of judicial precedent. This month the Supreme Court upheld the creation of an external review body of the judiciary. “There is real hope that this could be a big step forward,” says Mr Dino.
Not everybody gets off scot free. Judge Nicolau dos Santos was convicted in 2001 of stealing R$169.5m during the construction of a court building. A wake-up call may be sounding for the corrupt in Brazil. But for now, most are sleeping easy.
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O Brasil é o 59º país colocado no ranking de corrupção, com uma classificação de 3,9 pontos, segundo o relatório anual da entidade Transparência Internacional sobre corrupção entre nações. O levantamento foi e baseado na percepção de empresários, universitários e analistas. No relatório, a nota 10 corresponde ao menor grau de corrupção.
Entre os sul-americanos, o Chile é o mais bem colocado, aparecendo em 20º lugar com 7,4 pontos. A nação com menor porcentagem de corrupção é a Finlândia, com 9,7 pontos. Haiti e Bangladesh são os últimos colocados: 145º, com 1,5 ponto.
Veja a lista abaixo:
1. Finlândia (9,7)
2. Nova Zelândia (9,6)
3. Dinamarca, Islândia (9,5)
5. Cingapura (9,3)
6. Suécia (9,2)
7. Suíça (9,1)
8. Noruega (8,9)
9. Austrália (8,8)
10. Holanda (8,7)
11. Reino Unido (8,6)
12. Canadá (8,5)
13. Áustria, Luxemburgo (8,4)
15. Alemanha (8,2)
16. Hong Kong (8,2)
17. Bélgica, Irlanda, Estados Unidos (7,5)
20. Chile (7,4)
(...)
22. França, Espanha (7,1)
28. Uruguai (6,2)
41. Costa Rica (4,9)
51. El Salvador, República Tcheca, Trinidad e Tobago (4,2)
59. Brasil (3,9)
60. Belize, Colômbia (3,8)
62. Cuba, Panamá (3,7)
67. Peru, Croácia, Polônia, Sri Lanka (3,5)
87. República Dominicana, Irã, Romênia (2,9)
97. Argélia, Líbano, Macedônia, Nicarágua, Sérvia e Montenegro (2,7)
108. Argentina, Líbia e Autoridade Palestina (2,5)
112. Equador (2,4)
114. Honduras, Venezuela (2,3)
122. Bolívia, Guatemala, Sudão (2,2)
129. Iraque, Camarões, Quênia, Paquistão (2,1)
140. Paraguai, Azerbaijão (1,9)
144. Nigéria (1,6)
145. Haiti, Bangladesh (1,5)
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Brazilian Scandal Threatens President
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By HAROLD OLMOS
Associated Press Writer
August 21, 2005, 1:57 PM EDT
RIO DE JANEIRO, Brazil -- The money-for-votes scandal that has engulfed Brazil seems to be reaching the doorstep of President Luiz Inacio Lula da Silva.
In a succession of political earthquakes, high-ranking figures have been forced to quit. They are Silva's chief of staff; the president of the PT, or Workers Party; its treasurer; and its secretary general -- the latter for allegedly taking a $32,000 Land Rover as a gift from a private company.
This month 22 PT federal legislators, outraged by the allegations of bribery and suspect campaign funding, declared "independence" from party ranks -- a step toward a schism that could cost the party almost a fifth of its congressional force.
It all marks a sharp and lurid turnaround from three years ago, when Silva, or Lula as he is universally known, a union leader and high-school dropout of famously humble ways, was elected president in the first of a series of gains for leftists across Latin America.
"The events of the past few days are making the PT unviable as a democratic alternative that took decades to build. It is a tragedy for Brazil and for Latin America," said Inacio Cano, a political scientist at the Federal University of Rio de Janeiro.
The scandal that has transfixed Brazilians entails secret offshore bank accounts, dramatic airport arrests of politicians with suitcases of cash, and an imprisoned money dealer threatening to reveal more explosive details.
On Aug. 11, Duda Mendonca, manager of Silva's campaign in 2002, told congressional investigators that about $4.5 million had been paid for his advertising work through a secret bank account in the Bahamas.
Coming from the man whose catchy slogans such as "Lula Peace and Love" and "Lula Light" helped catapult the former lathe operator to the presidency, the allegation has raised suspicions that Silva knew at least part of his campaign was paid for with illegal money, deposited abroad to evade taxation.
Founded in 1980 during the last years of a 21-year military regime, the Workers Party called for "socialism with a democratic face" and found a following among unions, disillusioned Marxists and Roman Catholic church groups.
Silva, a co-founder, was jailed by the military regime for leading an auto strike that was deemed a threat to national security. After his release, his party emerged as a defiant challenge to the old political order.
But its clean image crumbled in June, when Rep. Roberto Jefferson, a government ally, accused the party of bribing legislators to support its legislation. However, he said Silva personally was innocent.
Then came a series of arrests of politicians leaving or arriving in Brazil with bags and even underwear stuffed with cash -- in one instance $4.3 million in seven suitcases.
On July 30, Silva delivered a speech accusing conservative "elites" of conspiring against him. Two weeks later he was on TV, red-eyed and blinking after an almost sleepless night, and apologizing for any wrongdoing by his government or party.
More details may come from Antonio Oliveira Claramunt, or "Barcelona Tony," an illegal dealer in foreign currency who was arrested a year ago on money-laundering charges and is serving a 25-year prison term.
In letters to his family printed in Veja, a weekly news magazine, Claramunt said he knew how the money was transferred abroad to secret accounts to finance political campaigns and avoid taxes. He said the deposits were made since 1989 -- and he knew who made the transfers.
Brought from his remote penitentiary to Sao Paulo for questioning by congressional investigators, Claramunt said he transferred money abroad illegally for national figures, including Central Bank President Henrique Meirelles and Justice Minister Marcio Thomas Bastos. Both denied the allegation and Claramunt did not substantiate his claims.
Claramunt had told his family he feared assassination because of what he knew. Investigators say they expect him to reveal more information.
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Anti-Lula forces rally as Brazil scandal heats up
Wed Aug 17, 2005 12:23 PM ET
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By Andrew Hay
BRASILIA, Brazil, Aug 17 (Reuters) - Thousands of left-wing militants demanded that President Luiz Inacio Lula da Silva step down on Wednesday as new allegations of tax evasion by his ruling party added fuel to a graft scandal.
Demonstrators carrying banners saying "Lula Out!" marched through the capital Brasilia in the first mass protest against Lula since allegations surfaced 11 weeks ago that the ruling Worker's Party bribed lawmakers to support legislation.
The protest -- estimated by police to have 12,000 to 15,000 marchers -- was larger than a 6,000-strong pro-Lula rally held on Tuesday. Police had initially said the protest attracted 10,000 people but revised the number downward on Wednesday.
"Lula is the head of all this organized crime. At the end of the investigation he has to be impeached," said Georges Michel, president of the Democratic Labor Party, or PDT, one of four left-wing parties represented at the rally that had been working against Lula before the scandal broke in June.
Allegations that Lula's former aides and Workers' Party officials used public funds to buy the support of lawmakers and finance campaigns have sparked Brazil's worst political crisis since President Fernando Collor faced impeachment and resigned in 1992.
Four ruling party leaders and Lula's former Cabinet Chief Jose Dirceu resigned because of accusations they ran the scheme.
Lula has not been directly implicated in wrongdoing. Centrist parties have eased up on calls for his impeachment and government supporters who had been silent have begun to vocally support the president.
Brazilian left-wing parties accuse Lula of betraying 2002 election promises to reduce poverty and clean up politics because he allied himself with centrist and right-wing parties to pass market-friendly reforms and limit public spending.
Support for Lula, Brazil's first working-class president, is slipping, and a poll last week showed for the first time he could lose in a second-round vote in the 2006 race.
The scandal moved closer to Lula when an illegal money changer on Tuesday accused the Workers' Party of evading taxes with foreign bank accounts and said he transferred funds abroad for Brazil's Justice Minister Marcio Thomaz Bastos.
The imprisoned money changer Antonio Oliveira

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