Federal Police Investigating Lula's Participation in Alleged Bribery Scheme

02/05/2016 - 08h59

The Federal Police are investigating the participation of former president Luiz Inácio Lula da Silva and other public agents in an alleged corruption scheme involving the purchase of parliamentary support for provisional legislation. This scheme is the focus of Operation Zelotes.

The information was contained within a document sent by the police to the Federal Courts in Brasília, where the case is in progress, justifying their decision to press on with the investigation.

	Zipi/Efe
	The name of former president Luiz Inácio Lula da Silva was contained within a document sent by the police to the Federal Courts

In the document, the detective Marlon Cajado argues that the investigation is necessary in order to determine whether other public agents, as well as those who have already been accused, were "corrupted, being associated with this criminal organization; or whether they were victims of this organization, which deceived them and used them to practice influence peddling."

Cajado was referring to the cases of Lula and the former ministers Gilberto Carvalho (Secretary-General), Erenice Guerra (Chief-of-Staff) and Nelson Machado (Pensions), as well as the executive secretary of the Finance Ministry Dyogo Oliveira, among others.

The Zelotes investigators are investigating allegations that members of the government were bribed for their approval of three provisional measures which granted fiscal incentives to the automotive industry. Caoa, of Hyundai, and MMC, of Mitsubishi, are among the manufacturers under investigation.

One of Lula's sons, Luís Cláudio, received R$2.4 million (US $620,000) from a consulting firm which lobbied alongside the Federal Government for the approval of the measures. Luís Cláudio says that the payment was for the provision of sports services.

The Federal Police are also investigating suggestions that members of the Administrative Council of Fiscal Resources (CARF) were bribed. The institution, which is linked to the Ministry of Finance, assesses fines applied by the Brazilian Federal Reserve.

The police document aims to clarify the investigation following complaints to the courts by the defense teams of the accused. They argue that the police have maintained a "parallel inquiry", even after the beginning of the trial in the courts.

According to Cajado, the accusation that led to the trial was presented in order to comply with court deadlines, given that several of the accused were being held in custody. After that, investigations were continued.

"The opening of new investigations into other illicit activities attributable to the criminal organization and even into the participation of new individuals is not illegal in any way," he wrote.

The Federal Prosecutor in Brasília is close to completing an assessment on the validity of the investigation. It is likely that prosecutors rule in favor of continuing the investigation.

PRIVILEGED JURISDICTION

The defense teams had also argued that the trial should take place at the Supreme Court, as the investigation mentions two senior members of parliament: Senate president Renan Calheiros (PMDB - Alagoas) and senator Romero Jucá (PMDB - Roraima).

Under Brazilian law members of parliament are entitled to privileged jurisdiction, according to which they may face any criminal charges brought against them in the Supreme Court.

However, the police pointed out that the mentions of Calheiros and Jucá do not justify opening a new inquiry, and as such, that there is currently no reason to transfer the trial to the Supreme Court.

Translated by TOM GATEHOUSE
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