Tue, Mar 07, 2017 - Page 7 News List

Brazil prosecutor plans to investigate Temer’s Cabinet

SLOW MOVING:Any minister on formal charges would only be suspended, and the government is likely to press ahead with reforms regardless of an investigation

Reuters, BRASILIA and SAO PAULO, Brazil

A top Brazilian prosecutor is to seek authorization from the Supreme Court this week to investigate senior ministers in Brazilian President Michel Temer’s Cabinet and senators from his Brazilian Democratic Movement Party (PMDB) for corruption, a source familiar with the situation said on Sunday.

Folha de S. Paulo newspaper reported that the request by Prosecutor General Rodrigo Janot will include Presidential Chief of Staff Eliseu Padilha and Wellington Moreira Franco, the minister in charge of a major infrastructure and privatization program.

According to the paper, Janot is also considering whether to include Temer himself in the request.

The source confirmed the thrust of the Folha report, but did not name the ministers and senators involved in the request, which is based on recent plea bargain deals by 77 employees of Brazil’s largest construction group Odebrecht SA.

The source, who asked not to be identified because he was not authorized to speak publicly, said prosecutors would also ask the Supreme Court to make public the content of the executives’ depositions, which are under seal.

Odebrecht — which agreed to pay a record US$3.5 billion to Brazilian, Swiss and US authorities to settle bribery charges in December last year — is at the heart of a sprawling investigation into illegal political payments by firms in return for contracts with Brazilian state oil company Petrobras.

The statements by Odebrecht executives are expected to further tarnish the image of Temer’s government, which is already struggling with rock-bottom ratings as it seeks to pass austerity measures aimed at curbing Brazil’s massive budget deficit.

However, the slow pace of justice in Brazil would likely allow the government to press ahead with pension and labor reforms in Congress before any effect was felt, analysts said.

“I don’t see a short-term effect on Temer’s clout in Congress,” said Luciano Dias, partner at consultancy firm CAC, adding that the Supreme Court typically takes about eight months to formally indict suspects and a further year before a trial begins.

A presidential aide said that any minister would only be suspended if prosecutors decided to bring formal charges against them following an investigation, and would only be dismissed if a judge accepted the charges and placed them on trial.

The departure of Padilha, who is already absent on health leave, would deprive the government of one of its most effective political operators, but Congressional leadership could take up the slack in ushering through reforms, Eurasia Group’s Christopher Garman said.

The allegations against Padilha and Moreira Franco stemmed from testimony by Odebrecht’s former head of government relations in Brasilia, Claudio Melo Filho, which was leaked to the media.

The testimony alleged that Odebrecht cultivated ties with senior members of the PMDB for years and that Padilha received an illicit 10 million Brazilian reals (US$3.2 million) payment for the party’s 2014 election campaign.

A spokesman for Padilha declined to comment.

A representative for Moreira Franco said he had never talked about party issues or financing with Melo Filho.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top