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Corruption claim engulfs new Brazil government

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A leaked recording allegedly showing a minister plotting the impeachment of Brazil's Dilma Rousseff in order to derail a massive corruption probe put acting president Michel Temer under intense pressure Monday.

The scandal threatened Temer just 11 days after taking power from Rousseff, who was suspended from the presidency on May 12 by the Senate for the start of an impeachment trial on charges of breaking government accounting rules.

Folha newspaper published what it said were excerpts of secretly taped conversations in March between Planning Minister Romero Juca and Sergio Machado, an ex-president of Transpetro oil company, both of whom have been accused in the probe.

In the conversations, Juca allegedly calls for a "national pact" to stop the probe, known as Operation Car Wash, in which dozens of top ranking politicians and business executives have been charged or already convicted for participation in a giant bribery and embezzlement scheme centered on state oil company Petrobras.

Transcripts of the conversations show him urging impeachment of Rousseff, saying "we need to change the government to stop this bleeding."

In comments immediately taken up by Rousseff supporters as evidence for her claim that the impeachment process is a coup in disguise, Juca says: "I am talking to the generals, the military commanders. They are fine with this, they said they will guarantee it."

According to the transcripts, he also says that he has been clearing his plans with justices on the Supreme Court, which oversees impeachment proceedings.

- Pressure to fire minister -

Temer immediately came under pressure from opponents and Brazilian media to fire Juca, one of the key men in his economic team as it sets out to tackle Brazil's deep recession.

Brazil's new economics team
Brazil's new economics team
Gustavo Izus, Anella Reta, AFP

"I am considering all this story to see whether he will stay or not at the ministry, but I am waiting for explanations from the minister," Temer was quoted as saying by Estadao news site.

Temer took over from Rousseff automatically, because he was vice president, but he suffers rock bottom approval ratings and faces major challenges to his authority and legitimacy.

Ricardo Berzoini, a former Rousseff minister, said the revelations "show the true reason for the coup against democracy and against Dilma Rousseff's legitimate mandate."

"The object was to halt Car Wash and push the investigations under the carpet," he said in a post on the suspended president's Facebook page.

The senior member of Rousseff's Workers' Party in the lower house of Congress, Afonso Florence, claimed the scandal could "lead to the cancellation" of the impeachment process.

Juca did not deny the authenticity of the secret recording but said his comments had been in reference to stopping the "bleeding" of Brazil's recession-struck economy, not the Car Wash probe.

In a hastily called press conference, Juca said he backed the Car Wash probe and said that Folha had taken "isolated phrases" out of context.

- Troubled start for Temer -

The Petrobras probe has seen prosecutors go after many of Brazil's most powerful figures. Rousseff herself is suspected of obstruction of justice, although she has not been accused of corruption for personal gain.

Temer has promised a fresh start for Brazil after growing economic and political paralysis under Rousseff. However, he has suffered a series of setbacks already, also including an uproar over his naming of a cabinet composed entirely of white men.

Supporters of Brazilian suspended President Dilma Rousseff protest against acting president Michel T...
Supporters of Brazilian suspended President Dilma Rousseff protest against acting president Michel Temer, in Sao Paulo, Brazil on May 22, 2016
Miguel Schincariol, AFP

He has rowed back on an initial decision to ax the culture ministry, reinstating the post after an outcry from several of Brazil's best known actors and singers.

Juca is the point man in the Temer government's plans to whip Brazil's bloated and underfunded budget into shape. The government faces potentially bitter resistance to suggestions that cuts may be necessary to social programs, pensions and health spending.

It was not clear how Folha obtained the recording, where the recording was made or why it was leaked more than a month later.

A leaked recording allegedly showing a minister plotting the impeachment of Brazil’s Dilma Rousseff in order to derail a massive corruption probe put acting president Michel Temer under intense pressure Monday.

The scandal threatened Temer just 11 days after taking power from Rousseff, who was suspended from the presidency on May 12 by the Senate for the start of an impeachment trial on charges of breaking government accounting rules.

Folha newspaper published what it said were excerpts of secretly taped conversations in March between Planning Minister Romero Juca and Sergio Machado, an ex-president of Transpetro oil company, both of whom have been accused in the probe.

In the conversations, Juca allegedly calls for a “national pact” to stop the probe, known as Operation Car Wash, in which dozens of top ranking politicians and business executives have been charged or already convicted for participation in a giant bribery and embezzlement scheme centered on state oil company Petrobras.

Transcripts of the conversations show him urging impeachment of Rousseff, saying “we need to change the government to stop this bleeding.”

In comments immediately taken up by Rousseff supporters as evidence for her claim that the impeachment process is a coup in disguise, Juca says: “I am talking to the generals, the military commanders. They are fine with this, they said they will guarantee it.”

According to the transcripts, he also says that he has been clearing his plans with justices on the Supreme Court, which oversees impeachment proceedings.

– Pressure to fire minister –

Temer immediately came under pressure from opponents and Brazilian media to fire Juca, one of the key men in his economic team as it sets out to tackle Brazil’s deep recession.

Brazil's new economics team

Brazil's new economics team
Gustavo Izus, Anella Reta, AFP

“I am considering all this story to see whether he will stay or not at the ministry, but I am waiting for explanations from the minister,” Temer was quoted as saying by Estadao news site.

Temer took over from Rousseff automatically, because he was vice president, but he suffers rock bottom approval ratings and faces major challenges to his authority and legitimacy.

Ricardo Berzoini, a former Rousseff minister, said the revelations “show the true reason for the coup against democracy and against Dilma Rousseff’s legitimate mandate.”

“The object was to halt Car Wash and push the investigations under the carpet,” he said in a post on the suspended president’s Facebook page.

The senior member of Rousseff’s Workers’ Party in the lower house of Congress, Afonso Florence, claimed the scandal could “lead to the cancellation” of the impeachment process.

Juca did not deny the authenticity of the secret recording but said his comments had been in reference to stopping the “bleeding” of Brazil’s recession-struck economy, not the Car Wash probe.

In a hastily called press conference, Juca said he backed the Car Wash probe and said that Folha had taken “isolated phrases” out of context.

– Troubled start for Temer –

The Petrobras probe has seen prosecutors go after many of Brazil’s most powerful figures. Rousseff herself is suspected of obstruction of justice, although she has not been accused of corruption for personal gain.

Temer has promised a fresh start for Brazil after growing economic and political paralysis under Rousseff. However, he has suffered a series of setbacks already, also including an uproar over his naming of a cabinet composed entirely of white men.

Supporters of Brazilian suspended President Dilma Rousseff protest against acting president Michel T...

Supporters of Brazilian suspended President Dilma Rousseff protest against acting president Michel Temer, in Sao Paulo, Brazil on May 22, 2016
Miguel Schincariol, AFP

He has rowed back on an initial decision to ax the culture ministry, reinstating the post after an outcry from several of Brazil’s best known actors and singers.

Juca is the point man in the Temer government’s plans to whip Brazil’s bloated and underfunded budget into shape. The government faces potentially bitter resistance to suggestions that cuts may be necessary to social programs, pensions and health spending.

It was not clear how Folha obtained the recording, where the recording was made or why it was leaked more than a month later.

AFP
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