Allegations of corruption hit Brazilian election fight

A FRESH corruption scandal involving the Brazilian president, Luiz Inacio Lula da Silva, has shaken his re-election campaign just 12 days before he goes to the polls seeking another four years in office.

One of Mr Lula's advisers resigned on Monday after he was accused of paying more than 400,000 for a document designed to discredit candidates opposing the Workers' Party (PT).

The document was leaked to a magazine, which printed allegations the PT's opponents for president, Geraldo Alckmin, and governor of Sao Paulo, Jose Serra, were involved in a scheme in which dozens of deputies skimmed money off inflated contracts to buy ambulances.

Both denied the accusations and the scandal now looks set to backfire on the PT and particularly Mr Lula.

It is worrying for the president because it comes just days before the 1 October ballot and threatens to damage his hopes of an easy victory. Mr Lula currently leads Mr Alckmin by between 22 and 25 percentage points.