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TRADE WARS
Brazil's war on corruption causes disarray
by Staff Writers
Brasilia, Brazil (UPI) Aug 24, 2011

disclaimer: image is for illustration purposes only

Brazilian President Dilma Rousseff's war on corruption -- right up to the ministerial and congressional level -- has caused unexpected disarray in the Latin American country's political life as her initiatives threaten to spin out of control.

Rousseff launched a campaign to clean her administration, prompting several high-profile resignations. However, the well-intentioned operation is no longer hers.

Instead, the media and mushrooming number of whistle-blowers have swept in with an avalanche of revelations that, although mostly unsubstantiated, aren't what the president hoped for.

Rousseff's hopes of orchestrating a carefully choreographed and centrally managed anti-corruption drive are in tatters, pushing Rousseff to appeal for inter-party unity in her fractious coalition.

Brazil has been beset with recurrent corruption scandals, including several that tainted the administration of former President Luiz Inacio Lula da Silva.

A developing crisis over the corruption scandals now threatens to derail Rousseff's plan to steer Brazil toward economic prosperity and regional pre-eminence.

Brazilian media and foreign news coverage of Brazil until recently were dominated by rising foreign investment inflows, huge public and private sector spending on development and defense and preparations for the 2014 FIFA World Cup and the 2016 Olympics.

Now Brazilians are greeted each day with news of fresh corruption scandals involving personalities in politics, business, sports and the celebrity culture.

Addressing loyalist members of coalition partners Workers Party and the Brazilian Democratic Movement, both coalition partners, Rousseff indicated she looked to the two parties as the pillars of "stability and trust" in the government.

Rousseff so far has lost four ministers, a fifth is under investigation in Congress and the media are busy making new allegations of corruption or unethical conduct by other members of her Cabinet.

Vice President Michel Temer hinted the government saw itself as stronger as ever with support from coalition partner Brazilian Democratic Movement even though the party lost Agriculture Minister Wagner Rossi last week, a close ally of his. Rousseff, like Lula before her, represents the Workers Party.

Rossi alleged foul play in his resignation letter, claiming he was the target of false accusations, including charges a lobbyist paid bribes and influenced public tenders in the Agriculture Ministry. Rossi's senior aide Milton Ortolan, executive secretary at the ministry, resigned earlier.

Brazilian media reports suggested the scandal revelations could be harder to predict and prove dangerous for Rousseff.

At least a part of the spiraling corruption revelations was seen linked to spiteful action by politicians and others upset over budgetary cuts introduced by Rousseff to reduce public sector waste.

After she took over from Lula on Jan. 1, Rousseff announced $30 billion cuts in the national budget, a large part of the reductions hitting hard legislators and their pet projects.

Rousseff also hoped to regulate Brazil's economic growth -- estimated to exceed 7.5 percent -- amid huge foreign cash infusions that overvalued the real, Brazil's national currency, increased inflation and threatened the country's export potential.

Critics say the cutbacks threaten to slow Brazil's growth and cause widespread damage to fragile political and economic structures now under attack from the torrent of corruption scandals.




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