Brazil’s Finance Minister Seems Convincing While Defending Himself from Kickback Charges

Brazilian Minister of Finance, Antonio Palocci, held a press conference over the weekend to explain that a controversial contract for garbage collection was made before he became mayor of Ribeirão Preto.

Palocci has been accused by a former aide of receiving payments from the Leão & Leão company, which had a contract to collect garbage in Ribeirão Preto, a city in the state of São Paulo where Palocci was mayor (2000-2002).


Palocci explained that according to the accusation, companies that won city contracts paid kickbacks to local authorities.


“I think it is very relevant to note that the money, according to the accusation, was paid by companies when they won contracts. Well, these contracts were signed before I became mayor,” said the minister.


Palocci said he was not criticizing former governments. “All I am saying is that I did not sign the contracts.”


However, Palocci did admit a no-bid contract worth US$ 57,140 (140,000 reais) while he was mayor.


“We had heavy rains in the city and had to clear streets of fallen trees. We just did not have time to go through a competitive bidding process. It was an emergency,” he explained.


Resignation


Palocci, strongly denied charges made by a former aide, Rogério Buratti, that he received US$ 21,000 (50,000 reais) in monthly payments from a company contracted to collect garbage when he (Palocci) was mayor of Ribeirão Preto. According to Buratti, Palocci passed the money on to the PT.


“I categorically and vehemently deny these charges. I never received or collected funds for the PT while I was mayor or at any other time,” declared the Minister.


Palocci explained that he had spoken to Brazilian President Luiz Inácio Lula da Silva about the matter, and the President had decided that he was to remain at his post.


“President Lula has decided that the accusations by Buratti will not affect my position and I will continue to be Minister of Finance,” said Palocci.


Economy


During the press conference on Sunday, Palocci, was asked if corruption charges made by a former aide could have a negative impact on Brazil’s economy. The Minister answered that today’s economic agents know the difference between political and economic processes.


“It was not always that way. In the past, a political crisis could quickly cause problems in the economic area. But not today because of two reasons. First, our fundamental economic situation is very solid. We have a strong position in foreign trade. In second place, we have a sound democracy in Brazil,” declared the minister.


Agência Brasil

Tags:

You May Also Like

Brazil Has Never Made So Many Cars: 2.61 Million

Brazil manufactured a record number of automobiles last year, 2.61 million, up 3.1% over ...

‘Be Patient,’ Lula Asks Brazil

"The art of government is the art of patience. We do not have the ...

Brazil Expecting Record Grain Crop, Up 5% from Last Year

According to Conab, the Brazilian Supply Corporation, Brazil expects the coming 2009/2010 grains crop ...

Brazil: In the Backlands, Plump is Beautiful

The cactus dessert is a natural for making people forget things like diets. It ...

Doctors Barred from Brazil Are Returned to Cuba

The 69 Cuban physicians who were working in Brazil and received judicial orders to ...

Today’s Election in Brazil May Put Two Women in Competition for Presidency

In Brazil, where voting is mandatory, close to 130 million Brazilians are going this ...

Brazilian Industry Grows Slightly in 9 Regions and Shrinks in 5

Among the 14 regions researched every month by the IBGE (Brazilian Institute of Geography ...

With 38,000 New Cases of Leprosy a Year, Brazil Appeals to UN

A letter signed by Brazilian President Luiz Inácio Lula da Silva this week will ...

Expozebu Can Generate US$ 3.5 Million in Deals for Brazil

The business roundtables between Brazilian and foreign businessmen during the 71st ExpoZebu, which took ...

Argentina Is Brazil’s Second Best Buyer and Seller

Brazil’s Secretary of Foreign Trade of the Ministry of Development, Industry, and Foreign Trade, ...