Corruption in Brazil

Brazil's corruption scandals
Aug 30th 2007
From The Economist print edition

BRAZILIANS are sadly used to corruption scandals, but even the most cynical might have paid attention this week. The Supreme Court indicted 40 people, including the former right-hand man of Brazil's president, Luiz Inácio Lula da Silva, and the former senior leadership of his Workers' Party (PT) on charges that included corruption, racketeering and money-laundering. The case marked the first time Brazil's highest court has ever brought criminal charges against politicians—and it could finally tarnish the president's scandal-proof image.

The charges arise from the mensalão (“monthly pay-off”), a scheme revealed two years ago under which politicians from parties allied to the government received bribes in return for votes in Congress. The scandal was complex: public money was diverted through contracts to an advertising firm, and paid out through a friendly bank. Those involved were from the heart of government.