Thu, Dec 13, 2012 - Page 7 News List

Lula da Silva knew about vote-buying: convicted bagman

Reuters, RIO DE JANEIRO

Former Brazilian president Luiz Inacio Lula da Silva knew about and used funds from a far-reachinag vote-buying scheme to pay for personal expenses, according to testimony by a convicted former consultant to the ruling Workers’ Party.

The testimony, reported on Tuesday by O Estado de S. Paulo newspaper, was given in September to the Brazilian attorney general’s office by Marcos Valerio, an advertising executive recently convicted as a bagman in the scheme.

THREATS

Valerio also testified that an aide to the former president made veiled threats when the scandal erupted in efforts to keep him quiet, the newspaper said.

According to the report, Valerio gave the testimony voluntarily in a bid to reduce his sentence after he and 24 other former Lula aides and associates were convicted in a landmark trial heard by Brazil’s Supreme Court.

Lula, on a visit to Paris with Brazilian President Dilma Rousseff, denied the accusations when approached by reporters upon leaving an event on Tuesday.

“I cannot believe in lies,” he said without stopping to elaborate.

Though Valerio still received a stiff 40-year prison sentence, the circumstances of his testimony are likely to cast doubt on his claims. Among other crimes, Valerio was convicted of handling the money used in the scheme, which involved payoffs to legislators in exchange for congressional support. The trial exposed crimes at the core of the administration of Brazil’s beloved former president and was hailed as a sign that the country is growing less tolerant of corruption.

Lula, still Brazil’s most influential political figure and a possible contender for a new run at the presidency in 2014, has denied any knowledge of the scheme since it came to light in 2005, roiling the first of his two terms.

Rousseff rejected the allegations as a “deplorable” attempt to smear the image of her mentor and predecessor.

STAR POWER

Though Lula’s legacy has been dented by the corruption scandal, the trial has done little to sap his star power — even after officials, including a former treasurer of the Workers’ Party, and Jose Dirceu, his once-powerful chief of staff, were convicted.

That could change if the allegations made by Valerio were proven. Critics have long alleged that the scheme could not have been carried out without Lula’s knowledge, or tacit approval.

The report said authorities already confirmed one of two deposits that Valerio alleged were made into a bank account controlled by a former Lula assistant. It also said that another Lula assistant, and now the director of the former president’s foundation, at the time the scandal broke told Valerio that “there are people in the PT [Workers’ Party] who think that we should kill you.”

The former president, who presided over eight years of sustained growth in Latin America’s biggest country, left office last year because Brazil’s constitution prohibits more than two consecutive terms in the presidency. His approval ratings at the time approached 90 percent.

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