Lula graft case puts Brazil at crossroads

SAO PAULO: In a development that is certain to throw South America’s biggest country and economy into a turmoil, the Brazilian federal police (PF) picked former president Luis Inacio Lula da Silva from his residence on Friday, taking him away for questioning in a corruption scandal that has engulfed the political class, especially the leaders of the ruling Workers Party (PT).
With the investigation, known as Operação Lava Jato (Operation Car Wash), into corruption in the state-owned oil firm Petrobras arriving at the doorstep of the ex-president, who left office in 2010 with 80% approval rating, Brazil stands at a crossroads where the future of Lula’s successor and the current president, Dilma Rousseff, is at stake as she faces impeachment for a budget related scandal.
The investigation, which began probing bribery, money laundering and tax evasion worth billions of dollars in March 2014, has already netted some of the top PT leaders. But withthe probe entering its 24th phase in which Lula has been questioned about a farmhouse in the city of Atibaia and a triplex in the beach town of Guaruja, it seems the scandal may change the politics of this country. “Ex-president Lula, besides being party leader, was the one ultimately responsible for thedecision on whowould be the directors at Petrobras and was one of the main beneficiaries of these crimes,” a police statement said on Friday. “There is evidence thatthe crimes enriched him and financed electoral campaigns and the treasury of his political group.”
With the Rio Olympics justfive months away,thedetention of Lula, who won the hosting rightsin 2008,is a big blow to Brazil’s image as an emerging country with tremendous soft power. Lula, who held the top office from 2003 to 2010,the years during which the country’s econo my grew rapidly and more than 45 million people were lifted out of poverty by his anti-poverty policies.
Because of deep social changes Brazil has undergone in the past 12 years, Lula enjoys a very positive image in the country and remains an icon of the South American Left along with the former Uruguayan president Pepe Mujica, who is a frequent visitor to Brazil.
But the growing scandal in Petrobras has singed the ruling party and dented the image of Dilma Rousseff, whose present approval rating is as low as 10%.