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Economy & Business - February 2004

BRAZIL: Rates and scandal delay recovery

The scandal centres on Waldomiro Diniz, a former deputy chief of parliamentary affairs at the presidential palace who was answerable to José Dirceu, the president's chief of staff. Diniz was sacked after a magazine, Epoca, published tape and video evidence that he had asked for bribes from Carlos Augusto Ramos (aka Carlinhos Cachoeira), one of the chief bankers in Rio of the popular lotteries known as jogo do bicho. The money from Cachoeira was to be used to fund the Partido dos Trabalhadores' election campaign in 2002.

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