LatinNews Daily Report - 19 November 2013

POLITICS | Kassab scandal rolls on. The São Paulo municipal corruption scandal claimed yet another victim on 18 November when a witness testified before the state public ministry that Antonino Grasso was also involved in a scheme to falsify tax receipts to shield property developers, in return for ‘favours’ from the developers. Grasso, of the Partido Verde (PV), served as the municipal secretary for people with disabilities and reduced mobility in 2010-2012 under the former mayor, Gilberto Kassab of the Partido Social Democrático (PSD). Grasso is still working for the current municipal administration, led by Fernando Haddad of the federally-ruling Partido dos Trabalhadores (PT). Grasso is the third high-ranking official from the former Kassab administration to be implicated in the corruption ring, which on public ministry estimates cost municipal coffers some R$500m (US$250m) in diverted funds. The other two include Kassab’s former finance secretary, Walter Aluísio Morais Rodrigues (2008-2011), and his deputy, Silvio Dias. At least five departments were involved in the scheme: culture, environment, sub-prefectures, finance and housing. Fernando Haddad has decried the corruption as “systemic”. Some of the more anti-PT media, however, are attempting to draw a link between the gang and Haddad’s office. Separately yesterday,Rio de Janeiro's state public ministry suspended for eight years the political rights of the thrice-former Rio mayor, Cesar Maia (Demócratas), on the grounds of administrative improbity relating to a corruption case involving 27 public contracts.

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