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Latin American News

Brazil Tries to Contain Scandal Damage

Wednesday, June 08, 2005 9:48:08 PM
By TALES AZZONI

Brazilian President Luiz Inacio Lula da Silva, listens during a nomination ceremony of the National Council of Justice, in the Presidential Palace, in Brasilia, Brazil, on Wednesday, June 8, 2005. Stocks plunged and Brazil's currency dropped against the U.S. dollar after the country's largest newspaper published an interview with the leader of the Brazilian Labor Party alleging Silva's Workers Party paid monthly "allowances" of more than US$12,000 (10,000) per month to unnamed congressional representatives. (AP Photo/Eraldo Peres) SAO PAULO, Brazil (AP) - The top financial officer for President Luiz Inacio Lula da Silva's party Wednesday denied paying off congressmen to keep the fragile governing coalition alive, making a bid to contain political damage from an alleged bribes-for-votes scandal.

After meeting for hours behind closed doors with party leaders, Workers Party treasurer Delubio Soares spoke publicly for the first time since the scandal, saying the party has never made payments "into the accounts of congressmen in exchange for their votes or support for government initiatives."

Soares told a news conference at party headquarters in Sao Paulo he was a victim of "political blackmail" by conspirators he did not name.


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