Government Leader Dilma Roussef has a headache this morning. The Supreme Court has opened a legal inquiry into Petrobas, the state-owned oil company, and the kickback schemes involved with the awarding of construction contracts. Federal police arrived at the front door of the home of Workers' Party Joao Vaccari Neto, treasurer, who is accused of receiving between $150 and $200 millions of dollars on behalf of the Party. Some 90 contracts are alleged to be involved. He was not arrested or charged, only questioned. Some members of Congress are asking that President Roussef resign.
Documents that brought light to the allegations were part of federal investigators plea deal with Pedro Barusco, a former Petrobras manager. Part of his plea deal included admission that he received $97 millions himself, and agreed to pay back all of it excepting $1 millions that he spent on trips and medical treatments. The Petrobras case, known as "Operation car wash" because it started as an investigation into money laundering at a car wash in Brasilia. Dozens of arrests have been made, including executives of some of Brasile's largest construction companies.
None of this bodes well for the former Brasilian president, "Lula" Luz De Silva, who has long supported his appointed successor, Wilma R. The Squid, as he is known among his people, has kept a low profile, but has stayed involved in politics since leaving office a few years ago. Wait until the feds start looking at the Olympic construction contracts. Hmmmm.
The Workers' Party will have to answer some serious questions about its activities. Opposition parties will raise considerable concerns about the ruling party and how it got to the presidency.
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