Political Risk Latin America Blog @PolRiskLatam

Brazil’s ex-President Lula faces misconduct inquiry

Posted in News and Articles, Political Risk by politicalrisklatam on February 25, 2011

by BBC news, February 23rd, 2011.

Federal prosecutors in Brazil say they are opening a case against former President Luiz Inacio Lula da Silva for alleged misuse of public funds.

They say the ex-president sent out 10 million letters to older Brazilians promoting low-interest loans in 2004. They allege the letters were not in the public interest and benefited a bank which was linked to another corruption scandal.

Lula has not yet commented on the allegations. One of his cabinet members, former Social Security Minister Amir Lando, is also being investigated.

‘Self-promotion’

The two allegedly sent out the letters to 10.6 million retirees in 2004 at a cost of around $3.5m. The letter informed pensioners of a new credit scheme which would allow them to take out loans at a reduced rate of interest.(continue reading… )

 

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