Brazil Witness Alleges Politicians Knew About Alleged Petrobras Scheme

Luciana Magalhaes and Will Connors – The Wall Street Journal, 5/11/2015

CURITIBA, Brazil—A convicted money launderer at the heart of an investigation into an alleged corruption scheme at Brazil’s state-run oil company Petroleo Brasileiro SA alleged President Dilma Rousseff and former President Luiz Inácio Lula da Silva knew about the alleged scheme.

Alberto Youssef, a currency dealer who was convicted of money laundering and sentenced last month to three years in prison, made the allegations to a congressional commission investigating the alleged corruption at Petrobras. Mr. Youssef had previously made the allegations to investigators as part of a plea deal for a lesser sentence.

When asked by lawmakers Monday if Ms. Rousseff and Mr. Lula da Silva, along with other top government officials, knew of the alleged scheme, Mr. Youssef said, “It is my understanding that [they] knew everything.”

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Brazil Witness Alleges Politicians Knew About Alleged Petrobras Scheme

Prosecutors in Brazil investigate Lula for alleged influence peddling

Samantha Pearson and Joe Leahy – Financial Times, 5/4/2015

Brazil’s federal prosecutors have opened a preliminary investigation into the country’s wildly popular former leader Luiz Inácio Lula da Silva, putting further pressure on his embattled protégée President Dilma Rousseff.

The probe into illicit influence peddling in Cuba, among other countries, comes as federal police also revealed they are also investigating suspected money laundering in transactions by two companies owned by João Santana, the political mastermind behind the election victories of Mr Lula da Silva and Ms Rousseff, both of the centre-left Workers` Party, or PT.

The prosecutors’ office in Brazil’s capital Brasília confirmed reports by a local magazine that Mr Lula da Silva is being questioned by their anti-corruption unit over claims he helped construction conglomerate Odebrecht win contracts overseas between 2011 and 2014.

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Prosecutors in Brazil investigate Lula for alleged influence peddling

Prosecutors in Brazil investigate Lula for alleged influence peddling

Samantha Pearson – The Financial Times, 5/4/2015

Brazil’s federal prosecutors have opened a preliminary investigation into the country’s wildly popular former leader Luiz Inácio Lula da Silva for illicit influence peddling in Cuba, among other countries, putting further pressure on his embattled protégée President Dilma Rousseff.

The prosecutors’ office in Brazil’s capital Brasília confirmed late on Sunday reports by a local magazine that Mr Lula da Silva is being questioned by their anti-corruption unit over claims he helped construction conglomerate Odebrecht win contracts overseas between 2011 and 2014.

Weekly magazine Época alleged on Friday that Mr Lula da Silva improperly used his influence to obtain loans from Brazil’s state development bank BNDES for Odebrecht’s dealings in Cuba and the Dominican Republic, often travelling to meet the countries’ leaders at the company’s expense. The magazine also accused Mr Lula da Silva, one of the founders of the ruling Workers’ Party (PT), of similar influence peddling in Ghana and Angola.

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Prosecutors in Brazil investigate Lula for alleged influence peddling

Ex-president’s relationship with Odebrecht scrutinized in Brazil

Blake Schmidt – Bloomberg, 5/2/2015

Brazil’s federal prosecutors have initiated a preliminary inquiry as to whether former president Luiz Inacio Lula da Silva used his influence to persuade the state development bank to help finance projects of one of Brazil’s biggest industrial conglomerates, according to media reports.

The weekly Epoca magazine was the first to report an inquiry into alleged influence-peddling involving the politician’s speaking engagements abroad. The magazine reported on Friday that Brazil’s development bank, BNDES, had financed Odebrecht SA construction projects in countries whose leaders Lula had met with.

Lula, Odebrecht and BNDES have each denied any wrongdoing.

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Ex-president’s relationship with Odebrecht scrutinized in Brazil

Good News, Brazil-Watchers, Dilma Not Sacking FinMin Levy

Kenneth Rapoza – Forbes, 4/1/2015

Bloomberg gives us Brazil watchers some good news: beleaguered president Dilma Rousseff is not going to sack Joaquim Levy, the country’s newly appointed Finance Minister.

“Levy is very important for Brazil today and he stands very firm,” she said in a Bloomberg interview in Brasilia. There has been a lot of speculation of late that Levy, a former Treasury secretary and asset manager at Bradesco, would be forced to resign.

Levy is the hand picked FinMin of Dilma’s predecessor and Workers’ Party strongman Luiz Inacio Lula da Silva. Levy represents Lula’s pragmatic capitalism, which is not who Dilma is. Dilma is more of a technocrat who believes the government, her government, knows exactly what it is doing.

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Good News, Brazil-Watchers, Dilma Not Sacking FinMin Levy

The United States and Brazil: On Reaping What You Sow

Jan Knippers Black – NACLA, 3/6/2015

It was often said in Latin America in the early 1960s that when the United States sneezed, Latin America caught pneumonia. In fact, it was repeated year after year until the fall of 2008, when the United States caught pneumonia and Latin America sneezed.

Brazil, in particular, after a short spell of sneezing, rebounded to its pattern of robust economic growth, grounded in sophisticated research and development, diversified products and trading partners. Through years both of boom and, more recently, slump, redistributive domestic programs, like Bolsa Familia, and higher minimum wages have enabled Workers’ Party (PT) governments to narrow the country’s income gap. Meanwhile, the U.S. sinks deeply into debt to China and the domestic income gap continues to grow. The one percent are thriving; not so the 99.

The changing relationship between the United States and Brazil over the last couple of decades responds in large part to changes in the global power game and to how each of the countries has played the game. Currently undergirded by socially responsible civilian leadership and the legendary diplomatic skills of Itamaraty, the foreign ministry, Brazil can expect to be taken into account on issues of global import; moreover, its collaborative outreach has served to strengthen national self-confidence elsewhere in Latin America. Does that mean that the United States can be counted upon now to treat Brazil, and Latin America in general, with respect, like good neighbors rather than subservient and potentially subversive clients? Apparently not.

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The United States and Brazil: On Reaping What You Sow