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Weekly Report - 13 August 2009 (WR-09-32)

BRAZIL: Rousseff accused of interfering to favour Sarney

President Lula da Silva's minister of the presidency and favoured successor in 2010, Dilma Rousseff, has been accused of interfering in the management of the Inland Revenue to favour a political ally, Senator José Sarney, whose businesses activities have been under scrutiny for possible tax evasion. The allegations are the latest twist in a corruption tale involving Sarney, who is the president of Brazil's senate, and the state-controlled energy company, Petrobras, which is the target of a senatorial investigation. Lula has done all he can to shield Sarney in order to control the investigation, fearing it could undermine Rousseff's prospective candidacy. But that support has now damaged Rousseff's reputation and Lula's own legacy, not least after all representations against Sarney were dismissed without a proper enquiry.

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