38 accused as Brazil corruption trial begins

By PAULO PRADA
Published on 04/08/2012 00:00

Seven years after a corruption scandal that rocked the government of former Brazilian president Luiz Inacio Lula da Silva, the country’s Supreme Court has began a landmark trial that could mar the wildly popular leader’s legacy.

Brazilians still do not know the extent of the infamous “mensalão” scandal, an alleged scheme to pay politicians a monthly retainer in exchange for their support in Congress. If prosecutors get their way, though, they could convict as many as 38 former officials and associates of the ruling Workers’ Party, several of whom were senior aides to Mr Lula at the time.

The affair has little bearing on the day-to-day dealings of president Dilma Rousseff, hand-picked by Mr Lula to succeed him and who won the election with his strong support. But the trial, expected to last more than a month, is being closely watched and is the subject of intense media attention.

At stake is the lustrous legacy of Mr Lula, Brazil’s most popular politician. He was sluggish in his initial response to the scandal, defending some of the accused, but is still beloved after an eight-year administration during which Brazil’s economy grew by an annual average of more than 4 per cent.

Though re-elected for a second term one year after the scandal toppled trusted deputies, details that may emerge during the trial could cast doubt on Mr 
Lula’s long-standing denials that he knew about alleged 
payments.

They could also scupper any plans he has to return to the presidency, a remote possibility he has acknowledged should Mr Rousseff decide against seeking re-election in 2014.

“If defendants argue that he in fact knew about any payments, it would be a serious stain,” said Andre Cesar, a political consultant in the capital, Brasilia.

Controversy swept the first day of the trial as the judge, Jose Antonio Dias Toffoli, refused to excuse himself from the case, despite a public outcry. He used to be a lawyer in the office of Jose Dirceu, Mr Lula’s once-powerful chief of staff and the alleged mastermind of the payment scheme.

A petition calling for the judge to step aside has circulated on Facebook – part of the media sensation accompanying the trial. On Wednesday, residents of Sao Paulo, Brazil’s biggest city, spelled mensalão in candles along a central street.

In Brasilia yesterday, security guards in black suits and sunglasses lined the perimeter of the colonnaded Supreme Court building.

Corruption is still a major problem in Brazil, and more often than not the country’s media unearth scandals before the police. The mensalão only emerged because of muck-
raking by Veja, a weekly magazine. Last year, six Rousseff ministers resigned after media linked them to unrelated scandals of their own.

The trial is an opportunity for Brazil’s courts to show some resolve.

“It’s often said that there is no punishment in Brazil,” former president Fernando Henrique Cardoso said. “Now we have an important moment for Brazilian history.”