Political Risk Latin America Blog @PolRiskLatam

Rousseff and ‘godfather’ Lula da Silva meet to decide on the Palocci crisis

Posted in News and Articles, Political Risk by politicalrisklatam on June 6, 2011

by Merco Press News, June 6th, 2011.

Brazilian President Dilma Rousseff was expected to consult her predecessor Lula da Silva before deciding whether to dismiss Cabinet Chief Antonio Palocci, who has come under scrutiny for consulting fees he earned while managing Rousseff’s election campaign, according to the Sao Paulo press.

Last month Folha de Sao Paulo reported Palocci earned 20 million Real (12.7 million US dollars) in consulting fees in 2010 while also serving in congress and managing Rousseff’s election campaign. The company, Projeto Consultoria Financeira e Economica Ltda, earned 160,000 Real in 2006, its first year of business, Folha said.

The newspaper also revealed later in the month that Palocci had purchased a flat in a Sao Paulo posh area and an office for which he paid over 4 million US dollars.

Even political allies consider the explanations Palocci gave insufficient to contain the political crisis surrounding him. There is growing fear within the government that the scandal may tarnish the image of President Rousseff and possible names to replace Palocci have also been considered, according to Folha. (continue reading… )

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